The Special Investment Facilitation Council (SIFC) offers advantages for agricultural investment, including a 25% tax reduction and exemption from customs duties on imports.
Learning from History: The PLMN IPP Contracts
The PLMN IPP contracts of the past serve as a cautionary tale. Similarities between that episode and the current situation are hard to ignore. Both involve significant economic decisions with far-reaching consequences. Understanding the repercussions of the IPP contracts should inform our approach to the Pakistan/SIFC deal.
The SIFC is emulating the PMLN model of 2014 by implementing take-or-pay agreements in the power sector to draw in investments. Notable projects include the $1.2 billion Thar coal venture, generating 1320MW, the $800 million 1200MW solar project in Layyah, and the $400 million 600MW solar undertaking in Jhang. It is suggested that a shift towards prioritizing mining and agriculture would be more beneficial, without the need for additional sovereign guarantees.
