USAID Investment Promotion Activity, Quarterly Progress Report (Oct-Dec 2023)

The project's goal is to support USAID/Pakistan's Country Development Cooperation Strategy by advancing Development Objective 3, "Increase Private Sector-led Inclusive Economic Growth." IPA aims to achieve this objective by improving the business enabling regulatory environment for investment promotion, institutional reforms, ease of compliance and doing business, and transparency. During the reporting period of October to December 2023, IPA's efforts resulted in Pakistani firms securing an impressive USD 2.4 million in Foreign Direct Investment (FDI), generating USD 5.6 million in U.S.-Pakistan bilateral trade, and catalyzing more than USD 300,000 in Private Sector Investments (PSI). The project's Investment Promotion and Trade (IP&T) workstream achieved substantial progress this quarter, focusing on catalyzing FDI and bolstering U.S-Pakistan bilateral trade. A key highlight of this quarter was the successful hosting of the first of three Pakistan Investment Roadshows in Dubai in November 2023. The event engaged over 70 international investors to interact with IPA's carefully curated pipeline of 31 investment-ready Pakistani firms with a cumulative investment ask of USD 231 million. IPA successfully facilitated over 300 one-on-one meetings between Pakistani firms and international investors, leading to considerable traction and potential closing of deals for multiple firms. IPA also formally launched the second round of the Pakistan Investment Pipeline Activity to expand and improve on its current pipeline of foreign investment-ready Pakistani firms. The team organized several outreach sessions in Karachi and Lahore with a tailored strategy reaching out to development finance institutions, brokerage houses, venture capital firms, co-working spaces, investment banks, and transaction advisory firms that have strong portfolios of firms with high potential for raising FDI. IPA continued to provide technical assistance for capital raising to three firms that are part of the pipeline through its consortium partner, Delphos International. The company specializes in capital raising and transactional advisory services. IPA successfully completed the market preparation stage for these firms, positioning them for potential investment opportunities. The project's progress is a testament to its commitment to promoting stability and prosperity for Pakistan through the achievement of its objectives. IPA is now gearing up for the next roadshows scheduled in Riyadh, Saudi Arabia, in March 2024, and San Francisco in August 2024, with the aim of securing at least USD 15 million of Foreign Direct Investment in Pakistani private sector firms.