The Sindh government has yet to carry out a credit rating of the investment opportunities available in the province as compared to other provinces of the country. However, the authorities alleged that the lethargic attitude of the officials concerned has kept this important move in cold storage for the last three years, it is reliably learnt by Pakistan Today.
The credit ratings played a significant role in the investment decisions of investors and also enable governments to access various financing tolls including issuance of safety bonds.
In this regard, the Sindh Board of Investment (SBI) had chalked out a plan and sought suggestions and recommendations from the Sindh’s Planning and Development Department for further progress on the issue. However, the plan was not considered important.
The SBI director-general had forwarded a letter No Dir (F&P) /SBI/2010/01 to the additional chief secretary (Development) for the comments so that further action could be taken in the light of recommendations, they said.
According to sources, “The purpose of setting up of investment department by the government of Sindh is to explore the potential of foreign investments in the province of Sindh under different sectors.”
“The SBI being a subsidiary of investment department had been able to create investment-friendly environment in the province in a short span of time through an effective mechanism of information dissemination,” the sources said.
“The SBI has already taken up mega investment projects like Education City, Japan Special Economic Zone, Livestock Special Economic Zone, Marble City and Infrastructure Development which could provide the foundation for expansion of the provincial economy,” it stated.
“To reach out to foreign investors holding credible information about the potential and dynamics of investments as well as business environment of the province, which enjoys various competitive advantages and vast natural resources, as compared to other provinces of the country. It shall be a prudential move if credit rating agency of the province in terms of investment is carried out through a qualified rating agency,” the letter added.
“Initially, the rating will be carried out between four provinces of the country which may be extended beyond national borders at an appropriate time in the future. The overall cost to be incurred on such rating is estimated to be around rupees one million, for which sufficient funds are available with the investment department in its Investment Promotion and Marketing schemes.
“Before the investment department invites EOIs for investment ratings, it needs considered opinion/input of the Planning and Development Department, government of Sindh for going ahead with the idea. I, therefore request you to kindly give input of the Planning and Development Department on the subject,” the sources added, adding no department had so far furnish the report.
