PM Shehbaz orders Board of Investment-SIFC merger
The Prime Minister has ordered the accelerated merger of BOI and SIFC, with SIFC leading efforts to attract foreign direct investment, ahead of a key visit to China.
- SIFC's expanded role in attracting foreign direct investment.
- Merger alignment with IMF observations and transparency requirements.
- New business-to-business focus for CPEC-II and SEZ investment.
ISLAMABAD: The Prime Minister has ordered the accelerated merger of the Board of Investment (BOI) and the SIFC. Under this new structure, the SIFC will take the lead in driving the government agenda to attract foreign direct investment (FDI).
The merger is planned for completion ahead of the Prime Minister’s high-profile visit to China on May 23, sources said.
SIFC has also been tasked to make a comprehensive presentation on the way forward to facilitate foreign and local investment, including SEZs status, legal framework and regulatory reforms, business facilitation centre and implementation of foreign investment (promotion and protection) Act 2022.
READ MORE: Cut in power tariff for SEZs: SIFC directs PD to take concrete measures
While talking with Business Recorder, the Minister for Investment Qaiser Ahmed Sheikh—who currently oversees both the BOI and SIFC—confirmed that the merger is being executed in alignment with International Monetary Fund (IMF) observations.
This move follows the IMF’s Governance and Corruption Diagnostic Assessment (GCDA) for Pakistan, released on November 19, 2025 asking for full public disclosure of all SIFC decisions, concessions, and beneficiaries in annual report.
Plans have been finalized for a second official visit to China under the CPEC-II framework. Unlike the first phase of CPEC, which was primarily government-to-government (G2G), this new stage focuses on fostering business-to-business (B2B) collaborations, he added.
The minister noted that numerous Chinese firms have expressed strong interest in investing within Pakistan’s Special Economic Zones (SEZs), which offer lucrative nine-year tax holidays in first visit. He emphasized that Pakistan is the only country under IMF oversight that provides these kinds of major tax benefits to investors.
In September 2025 officially launched the second phase of the China-Pakistan Economic Corridor (CPEC 2) with an, Action Plan to Foster an Even Closer China-Pakistan Community with a Shared Future (2025-2029).
Addressing the recent decline in Foreign Direct Investment (FDI), the Minister attributed the IMF Pakistan program and negative external propaganda by India.
Copyright Business Recorder, 2026
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