Pakistan set to receive huge capital influx amid Gulf turmoil: Qaiser Sheikh

ISLAMABAD: Federal Minister for Board of Investment, Qaiser Ahmed Sheikh, on Saturday claimed that significant investment is expected to enter Pakistan within the next 15 days.

Speaking on the ARY News program “On My Radar”, Sheikh said he believes the Iran conflict will last a maximum of two more weeks. “After the war ends, normalcy will return at a rapid pace,” he said.

In the current scenario, Sheikh added, Pakistan has emerged as a stable country, predicting that Pakistanis who invested in Gulf countries, including the UAE, may withdraw their capital due to the instability in the region during the conflict.

“After the next 15 days, a huge inflow of capital will come to Pakistan. We only need to provide the right incentives to investors. Many Pakistanis who invested in the Gulf are now regretting it,” he said.

Calling the Middle East turmoil “a blessing in disguise,” Sheikh emphasized that proper incentives must be offered to prevent investments from being diverted to other countries such as Hong Kong. “We also need to reduce taxes to attract more investors,” he added.

The Gulf region has faced economic disruption due to Iran’s aerial attacks and the closure of the Strait of Hormuz following U.S. and Israeli strikes beginning February 28.

The attacks on the oil-rich states, including their hydrocarbon infrastructure, and Iran’s effective closure of the Strait of Hormuz, a crucial shipping route for around a fifth of global crude oil and liquefied natural gas, have disrupted Gulf economies and punctured their image as a safe haven for business and investment.

In response, Dubai has approved economic facilitation measures worth 1 billion dirhams ($272 million) to support the business sector, with implementation beginning April 1 for a period of three to six months, according to a post by the Dubai Crown Prince on X.

The support measures ‌aim ⁠to enhance the flexibility of the emirate’s economy, strengthen ​preparedness ​and ⁠enable businesses and families to ​navigate current ​economic ⁠conditions.