Company type | Sovereign wealth fund |
---|---|
Industry | Institutional investor |
Founded | 2023 |
Headquarters | , |
Services | Investments |
Pakistan Sovereign Wealth Fund (PSWF) is the sovereign wealth fund of Pakistan that was established by the Pakistani government through the Pakistan Sovereign Wealth Fund Act 2023.
The aim of the fund was to contribute to sustainable economic development in Pakistan by increasing local investment as well as attract investment from the Gulf Cooperation Council and Gulf countries. [1] There has been criticism of the proposed fund, with the International Monetary Fund (IMF) asking that it be closed down due to the risk that the government lose control of the seven profitable state-owned companies transferred to the fund. [2]
On 31 July 2023, the National Assembly of Pakistan approved legislation to establish Pakistan Sovereign Wealth Fund. [3] On 2 August, the Senate of Pakistan passed a law allowing the establishment of state-owned Fund. [4]
In August 2023, the Government of Pakistan transferred its entire shareholding in seven companies worth 2.3 trillion Pakistani rupee to a US$8.06 billion sovereign wealth fund. [5] [6]
In July 2024, the IMF demanded abolition of the fund in return for further assistance. The IMF said that the Pakistani government may lose control over the strategic companies transferred to the fund. The IMF urged the government to strengthen its privatisation law instead of selling these strategic assets in a non-transparent manner. [2]
In October 2024, Ahsan Iqbal, the Minister for Planning, Development and Special Initiatives, convened a meeting with a delegation from consulting company Alvarez and Marsal for the establishment of Pakistan Sovereign Wealth Fund. [7]
The economy of Pakistan is categorized as a developing economy. It ranks as the 24th-largest based on GDP using purchasing power parity (PPP) and the 46th largest in terms of nominal GDP. With a population of 241.5 million people as of 2023, Pakistan's position at per capita income ranks 161st by GDP (nominal) and 138th by GDP (PPP) according to the International Monetary Fund (IMF).
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