It has been announced by the United Kingdom (UK) that it will fund projects worth one billion pounds in Pakistan. This will encourage British companies to set up facilities in Pakistan. As per the World Bank’s ease of doing business index, Islamabad has improved the environment for doing business
UK Her Majesty’s Regional Trade Commissioner for the Middle East, Afghanistan, and Pakistan (MEAP) region, Simon Penny said, “The UK announced an increase in our funding to support Pakistan from 400 million pounds to one billion pounds. He said this while speaking to this journalists at the British Deputy High Commission in Karachi.
The UK will offer direct lending into different projects including infrastructure, roads, hospitals, and schools.
He said, “I think this is a very good example of how the UK is having confidence over Pakistan. Pakistan is a very important market for us.”
The UK Deputy High Commissioner in Karachi Elin Burns said that the UK is working to boost investment and trade with Pakistan.
Penny said that UK firms were provided funding to do business in other countries through export credit agency, UK Export Finance (UKEF). Now that same funding will be given to Pakistani companies and projects.
He said, “It is the money that the UK will make available to Pakistan for Pakistani companies and Pakistani projects.”
Adding, “For making that money available, we look for borrowers of that money to a source of a minimum 20 percent of the project from the UK, which is very favorable. It also provided a very safe return [of money] in terms of the law of the land which is…10 years or longer.”