USAID Investment Promotion Activity, Year 2 Annual Progress Report (2022-23)

The project's implementation period is from December 1, 2021, to November 30, 2026, with a total contract value of USD 16,876,093.00. The project has four main objectives: to improve the business enabling regulatory environment for investment promotion, to institutionalize reforms, ease of compliance, and transparency, to increase U.S.-Pakistan bilateral trade and investment, and to mobilize Foreign Direct Investment (FDI) and enhance U.S.-Pakistan bilateral trade. In its second year of implementation, IPA significantly expanded its programmatic activities to ensure that the project was on track to achieve its targets related to FDI and U.S.-Pakistan trade. The project collaborated with investors, Pakistani firms, and strategic partners to integrate its initiatives with the priorities of the government and the private sector. The U.S. Ambassador to Pakistan, Donald Blome, and Minister of State for Finance and Revenue, Dr. Ayesha Ghaus Pasha, formally launched IPA during an exclusive event in Islamabad, which established credibility with the Government of Pakistan and investors, highlighted opportunities, and forged key relationships. During this reporting period, IPA played a pivotal role in assisting Pakistani firms in securing USD 1.5 million in FDI, catalyzing a substantial USD 5.2 million in Private Sector Investments (PSI), and generating an impressive USD 12.9 million in U.S.-Pakistan bilateral trade. These achievements are especially remarkable given the backdrop of ongoing political and economic turbulence in Pakistan. Under the Investment Promotion and Trade (IP&T) workstream, the project formally launched its Pakistan Investment Pipeline Activity, which is the project's flagship initiative to raise FDI. IPA organized 21 outreach sessions across Pakistan, which over 900 private sector firms attended, and reached out directly to 212 firms looking to raise investments. As a result, IPA received 223 expressions of interest from firms looking to raise investments. The project's achievements are a testament to its commitment to attracting investment and promoting trade in Pakistan, despite the challenging economic environment. IPA remains resolute in its mission to attract a minimum of USD 35 million in FDI over the next one year.