Pakistan Cabinet Approves Hiring Foreign Consultancy Firms for Investment Projects

The federal cabinet has made a significant decision to relax the public procurement legal framework in order to engage foreign consultancy firms to support the Special Investment Facilitation Council (SIFC) in preparing investment projects for Gulf countries. This move comes as a response to the perceived lack of project planning and execution skills among Pakistani bureaucrats, prompting the government to seek external expertise for a period of five years.

The decision, approved through a summary circulated by the cabinet, aims to address the shortcomings in project preparation for investments from countries like Saudi Arabia, the United Kingdom, and Kuwait. Pakistan recently offered attractive returns to Saudi Arabia, with potential investment opportunities promising returns ranging from 14% to an impressive 50%. Notably, the government's presentation to a Saudi delegation received positive feedback, highlighting the need for enhanced preparedness on Pakistan's part.

The challenges within the Pakistani bureaucracy have been attributed to the practice of appointing generalists, such as Pakistan Administrative Service (PAS) officers, to key economic ministry positions without specialized expertise. This lack of domain knowledge has hindered effective decision-making and project implementation, prompting the cabinet to approve a special procurement process for engaging top consulting firms to address these gaps.

Under the new framework, foreign consultancy firms will be governed by the guidelines set forth by the SIFC and the Special Joint Committee on Consulting Support. The initiative, aimed at enhancing project preparation processes and technical capabilities, will be in effect for a five-year period, providing support to various federal ministries, the Board of Investment, the SIFC, and the Public Private Partnership Authority.

The decision to hire foreign consultancy firms marks a strategic shift in Pakistan's approach to project planning and execution, reflecting a commitment to leveraging external expertise for economic development initiatives. By streamlining the procurement process and prioritizing technical proficiency, the government aims to enhance its capacity to attract and manage foreign investments effectively.