Islamabad, August 16: The USAID-funded Competitiveness Support Fund (CSF) and the Board of Investment signed a Memorandum of Understanding (MoU) to support structured economic reform processes for improving Pakistan’s investment climate and enhancing its economic competitiveness.

Witnessed by Economic and Commercial Councilor US Embassy, Amy Holman, the MoU was signed by Federal Minister of Privatization and Investment, Zahid Hamid, and Minister of State for Finance and Chairman of the Competitiveness Support Fund (CSF), Omar Ayub Khan. Mr. Mushtaq A. Malik, Secretary BOI, also signed the MoU as a witness.

“Competitiveness is the key to long-term economic growth,” said Amy Holman while speaking on the occasion. “We are pleased to see that the Government of Pakistan’s policies of de-regulation, liberalization and privatization are working and providing concrete results.”

USAID’s funding for economic growth initiatives will exceed $73 million, out of which Thursday’s agreement reaffirmed U.S. commitment of $12 million to continue generating economic success and reducing poverty in Pakistan.

According to the MoU, BOI and CSF will undertake joint initiatives to support the creation of a Foreign Investors Council of Pakistan (FIC) as a forum for policy dialogue between the Government of Pakistan and the Foreign Investor Community with a view to strengthening Pakistan in competing for international investment, promoting it as a preferred investment location and enhancing its industrial competitiveness.

Speaking on the occasion, Minister for Privatization and Investment, Zahid Hamid, said that the MoU was a landmark in terms of the international community’s confidence in Pakistan’s economic policies. “We have incorporated competitiveness as the cornerstone of Pakistan’s growth strategy,” he said, “I am confident that the Competitiveness Support Fund will support the Board of Investment to generate more foreign direct investment in the country.”

In his remarks, Minister of State for Finance and Chairman of the CSF, Omar Ayub Khan, highlighted the importance of investment promotion for economic growth in competitiveness. “The country needs more foreign direct investment to enhance the productivity of its manufacturing industry, managerial professionalism and skill development, so that the Pakistani industry can compete with high value-added productivity in the international markets,” he said.

CSF is a joint initiative of the Ministry of Finance and the U.S. Agency for International Development (USAID). It supports Pakistan’s goal to have a competitive economy by providing input into policy decisions, working to improve regulatory and administrative frameworks, and enhancing public-private partnerships within the country.

Support for CSF is part of the $1.5 billion in aid that the U.S. is providing to Pakistan, through USAID, over five years to improve economic growth, education, health, and governance, and for earthquake reconstruction.

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