$148m trade deals in M&As of MNCs recorded in 8MFY25

ISLAMABAD: The business transactions worth $148 million (Rs 41 billion) in mergers and acquisitions of multinational companies in key sectors were recorded during the first eight months (July–February) of FY2024-25.

This growth has been attributed to the Special Investment Facilitation Council (SIFC), which was established in June 2023 to support investors and expedite approvals.

Official sources told Business Recorder that overall foreign direct investment (FDI) in Pakistan rose by 41% during the first eight months (July–February) of FY2024–25, reaching $1.618 billion.

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By cutting red tape and improving coordination among government departments, the SIFC has helped close major investment deals in energy, agriculture, tech, and finance. These mergers and acquisitions are valued at approximately $148 million. With additional projects in the pipeline, SIFC is playing a pivotal role in attracting global investors to Pakistan.

Launched in June 2023, SIFC was created to serve as a “single window” for investors, fostering inter-departmental coordination and fast-tracking project investments and privatization in key sectors such as defense, agriculture, infrastructure, information technology, and energy.

The Council operates through an integrated and collaborative framework that brings together key government stakeholders. This approach reduces bureaucratic hurdles, accelerates decision-making, and enhances investor confidence.

Since its inception, SIFC has played a transformative role in reshaping Pakistan’s investment landscape. According to the State Bank of Pakistan (SBP), FDI rose by 41% in the first eight months of FY2025, with net inflows reaching $1.618 billion. This notable surge is largely attributed to the Council’s proactive facilitation and swift resolution of investor concerns.

A key driver of this investment momentum—worth approximately $148 million (Rs 41 billion)—is a series of high-value foreign transactions facilitated by the SIFC. These include major acquisitions in the energy, agriculture, technology, and financial services sectors. By streamlining regulatory approvals and mobilizing institutional support, SIFC is positioning Pakistan as an attractive destination for international capital.

Examples of foreign direct investment facilitated by SIFC include:

1. Aramco Asia acquired a 40% stake in GO Petroleum, marking its entry into Pakistan’s fuel retail market and reflecting growing investor confidence.

2. MNT–Halan, Egypt’s largest and fastest-growing lender, acquired Advans Pakistan Microfinance Bank Limited, boosting competition and fintech innovation in the financial sector.

3. Euricom SPA, a leading European rice trading company, acquired a 50% share in Fatima Euricom Rice Mills (Pvt) Ltd, highlighting foreign interest in Pakistan’s agriculture sector.

4. Aquashore SA, a subsidiary of the Gunvor Group of Switzerland, acquired a 50% stake in Total Parco Pakistan Ltd (TPPL), expanding its presence in Pakistan’s energy sector.

5. Wafi Energy Holding Limited and Asyad Holding of Saudi Arabia acquired a 77.42% shareholding in Shell Pakistan Limited, strengthening Pakistan-Gulf economic ties.

6. Bazaar Technologies, one of Pakistan’s fastest-growing startups operating as a B2B e-commerce marketplace, attracted over $100 million in funding from global and regional investors. The company also acquired 100% shares in Wemsol (Pvt) Ltd, expanding its footprint in the fintech ecosystem.

7. National Logistics Corporation (NLC) formed a joint venture with DP World Logistics, holding a 60% stake to upgrade Pakistan’s logistics infrastructure.

In all these investment deals, timely regulatory support from the Competition Commission of Pakistan (CCP) has played a vital role in enabling smooth approvals and successful closures.

As part of its broader investment strategy, SIFC has prioritized the development of Pakistan’s mineral sector. The Ministry of Industries and Production organized the Pakistan Mineral Investment Forum 2025 in Islamabad on April 8–9. This two-day global event aimed to accelerate investments in mining, drive policy reforms, showcase innovation, and build strategic partnerships. Several Memorandums of Understanding (MoUs) were signed during the forum, paving the way for new investments and joint ventures.

The creation of the SIFC is proving to be a strategic move to overcome bureaucratic red tape and enhance investor facilitation. Looking ahead, SIFC is on track to achieve its short-term FDI target of $5 billion, with a long-term vision of attracting $100 billion in foreign investment. The Council also envisions boosting Pakistan’s nominal GDP to $1 trillion by 2035.

With improved policy alignment, enhanced facilitation, and strengthened security commitments, Pakistan appears to be entering a more stable and opportunity-rich phase for foreign investors.

Copyright Business Recorder, 2025