ISLAMABAD: The United States Agency for International Development (USAID) on Monday signed a memorandum of understanding (MoU) with three Pakistani firms aimed at raising $53 million foreign direct investment within the next 9-12 months.
The MoU was signed during the “Investment and Climate Summit”, organised by the USAID under its Investment Promotion Activity (IPA). The three Pakistani firms with whom the MoU was signed included Shams Power, Walee Technologies, and Al Hadeed.
The MoU is set to raise $53 million FDI within the next 9-12 months.
The Summit also underscored the US government’s commitment to fostering foreign direct investment (FDI), elevating bilateral trade between Pakistan and the US, and addressing Pakistan’s climate change challenges.
While expressing gratitude to the US government, caretaker Federal Minister for Commerce Gohar Ejaz stated that the USAID has been a partner in assisting Pakistan in the development sector and this support is greatly appreciated. He said that the government of Pakistan is committed to establishing a conducive environment for investment, nurturing innovation, and streamlining trade processes.
He said that the Summit is a testament to the tangible outcomes of the robust partnership between Pakistan and the US, focusing on increased FDI and enhanced bilateral trade relations.
Currently, he added that the country’s trade deficit is $20 billion. He said that if 20,000 small investors and entrepreneurs make US$1 million exports annually, the trade deficit of the country could be eliminated in one year. He said that the country’s top 100 companies make exports of US$20 billion while the rest of the other exports $10 billion. He further stated that the government is focusing on the promotion of the 20,000 small investors.
“Pakistan has a small economy. We are trying to cover our deficit by increasing exports,” he said, adding that the country’s agriculture and non-traditional items contributed a lot to the national economy. He also invited foreign investors, especially from the US to invest in Pakistan.
Speaking on the occasion, USAID’s Mission Director Kate Somvongsiri stated that the Investment and Climate Summit reflects the United States’ unwavering commitment to supporting Pakistan’s economic endeavours.
“Through initiatives such as the Green Alliance Gaming Challenge Awards, USAID Grants, and development of the Pakistan Investment Guide, we aim to cultivate a resilient economy, attract FDI, and deepen our bilateral trade relations,” the USAID’s Mission Director said.
A key highlight of the summit was the USAID Green Alliance Gaming Challenge Awards, which celebrated the innovation of Pakistani game developers. Their creation raises awareness about critical climate issues and contributes to the country’s growing gaming industry.
The USAID’s Mission Director Somvongsiri handed over the “Pakistan Investment Guide” to Secretary Board of Investment Sohail Rajput. Through USAID’s assistance, the “guide to start investing in Pakistan” will serve as a strategic tool to attract investment, foster economic development, and strengthen the US-Pakistan bilateral trade relationship.
The event witnessed the presentation of grant completion certificates to Pakistani firms that successfully implemented USAID grants, showcasing the efficacy of these initiatives in facilitating economic partnerships and attracting FDI.
