USAID Investment Promotion Activity, Quarterly Progress Report, APR-JUN 2023

IPA stepped-up activities significantly in its Investment Promotion and Trade (IP&T) workstream and launched the Pakistan Investment Pipeline Activity. This initiative, along with the capital raising efforts of Delphos (IPA's subcontractor), has laid a solid groundwork towards achieving IPA targets of raising at least USD 30 million of FDI during the next one year. During this reporting period, IPA reached out to a large number of companies looking to raise FDI as part of its outreach strategy for the Pakistan Investment Pipeline activity. The project organized 18 engaging and interactive outreach sessions across Pakistan, which over 450 firms attended. IPA also reached out directly to 212 firms. As a result, by the end of this quarter, IPA received a total of 206 applications for its pipeline and project consultants completed evaluations of 171 applications. The evaluators shortlisted 70 applicants for the second stage of evaluation and engaged with 40 firms directly to solicit additional information about their investment proposals. Based on the second stage evaluations, IPA selected 19 firms with a cumulative investment ask of USD 101 million for the pipeline. In parallel with the pipeline activity, IPA is developing an investor engagement mechanism that will be used for investor-investee matchmaking. IPA consultants developed a database of over 300 relevant investors that have previously invested in the region or have expressed interest in investing in Pakistan. The project will initiate the investor-investee matchmaking exercise early next quarter. IPA has developed a comprehensive investment engagement strategy along with the required communication material to take this process forward in a systematic and effective manner. The Pakistan Investment Pipeline will also feed into IPA's other activities such as the Pakistan Investment Roadshows that the project is organizing in Dubai (United Arab Emirates) in October 2023, and in San Francisco and Riyadh in March 2024. Following USAID's approval for the roadshows this quarter, IPA initiated preparatory work and engagements to ensure the successful planning and execution of these international roadshows that will help catalyze investments into Pakistan. IPA has made significant progress in raising FDI, leveraging private sector investments, and generating U.S.-Pakistan bilateral trade. The project has mapped over 300 international investors and registered 206 firms looking to raise capital with its Pakistan Investment Pipeline. IPA has also raised $1.2 million in FDI, leveraged $4.9 million in private sector investments, and generated $3.4 million worth of U.S.-Pakistan bilateral trade. The project's key program dates include the project's implementation period from December 1, 2021, to November 30, 2026. The project goal is to support USAID/Pakistan's Country Development Cooperation Strategy to promote a more stable, peaceful, and prosperous Pakistan by advancing Development Objective 3, "Increase Private Sector-led Inclusive Economic Growth," contributing to intermediate result 3.2 "Business enabling environment (BEE) improved." The project objectives include improving the business enabling regulatory environment for investment promotion, institutional reforms, ease of compliance and doing business, and transparency, increasing U.S.-Pakistan bilateral trade and investment, and mobilizing FDI and U.S.-Pakistan bilateral trade. IPA's quarterly progress report highlights the project's achievements and progress towards its targets. The report provides an overview of the project's activities, progress, and challenges, as well as its plans for the next quarter. The report also includes annexes that provide additional information on the project's progress, including progress on performance indicators, financial reports, photographs, and a list of subcontractors and sub-awardees.