ISLAMABAD, Aug 16: The Board of Investment (BoI) and the USAID-funded Competitiveness Support Fund (CSF) signed a memorandum of understanding (MoU) to support economic reform processes for improving Pakistan’s investment climate and enhancing its economic competitiveness.

Federal Minister for Privatisation and Investment Zahid Hamid and Minister of State for Finance and Chairman CSF Omar Ayub Khan inked the MoU. US Embassy Counselor for Economic and Commercial Affairs Amy E. Holman was also present.

“Competitiveness is the key to long-term economic growth,” said Amy Holman while speaking on the occasion. “We are pleased to see that the government of Pakistan’s policies of de-regulation, liberalisation and privatisation are working and providing concrete results,” the US embassy official added.

According to the MoU, BoI and CSF will undertake joint initiatives to support the creation of a Foreign Investors Council of Pakistan (FIC) as a forum for policy dialogue between Pakistan and the foreign investors’ community with a view to strengthening Pakistan in competing for international investment, promoting it as a preferred investment location and enhancing its industrial competitiveness. USAID’s funding for economic growth initiatives will exceed $73 million, out of which Thursday’s agreement reaffirmed U.S. commitment of $12 million to continue generating economic success and reducing poverty in Pakistan.

CSF is a joint initiative of the ministry of finance and the U.S. Agency for International Development (USAID).

It supports Pakistan’s goal to have a competitive economy by providing input into policy decisions, working to improve regulatory and administrative frameworks, and enhancing public-private partnership within the country.

Support for CSF is part of the $1.5 billion in aid that the US is providing to Pakistan, through USAID, over five years to improve economic growth, education, health, and governance, and for earthquake reconstruction.