Ban on industrial gas connections may be lifted

BOI chief says Pakistan lagging behind even Sri Lanka, Bangladesh in investment

LAHORE: Board of Investment (BOI) Chairman Miftah Ismail has announced that the ban on new industrial gas connections is expected to be lifted as the investment board has sent a summary in this regard for approval of the prime minister.

Speaking at the Lahore Chamber of Commerce and Industry (LCCI), Ismail revealed that some private-sector investors were playing their role to help the government overcome gas shortage and they were negotiating deals for the import of liquefied natural gas (LNG).



“Soon after taking over in 2013, Prime Minister Nawaz Sharif took gas and electricity shortage as the biggest challenge to the economy and today we are sure there will be no load-shedding in 2018,” he remarked.

He voiced hope that the state of affairs pertaining to investments would get better with the improvement in infrastructure, electricity, water and gas supply.

Recalling that Pakistan was the most open and fast growing economy in the 1970s, Ismail said the country was now lagging behind even Sri Lanka and Bangladesh.

Pakistan’s investment-to-gross domestic product (GDP) ratio is just 15% compared to average ratio of around 30% in India, Sri Lanka and Bangladesh.

Ismail underlined the dire need for enhancing the investment-to-GDP ratio, saying both local and foreign businessmen should be treated equally and productive investment should be promoted by encouraging domestic investors.

Turning to the topic of China-Pakistan Economic Corridor (CPEC), the BOI chairman praised Beijing for standing behind Pakistan in difficult times and making huge investments.

Reservations about CPEC were not right as Pakistani and Chinese businessmen would be given equal opportunities, he said, adding Special Economic Zones were being developed throughout the country where varying facilities would be available to the industrialists.

Speaking on the occasion, LCCI President Abdul Basit stressed that foreign investment could not be promoted without encouraging local investors.

Unfortunately, he said, the present situation was not good for local businessmen as their premises were being raided by tax officers and their bank accounts were being frozen.

“A reduction in the number of tax return filers and rising revenues is ample proof that existing taxpayers are being squeezed,” he remarked.

Over the past few years, foreign direct investment (FDI) had been showing a declining trend. Though CPEC had improved the scenario, but still a lot of work needed to be done, he said.



CPEC has grabbed the attention of Germany, Russia, Iran and many other countries and work on various projects is well under way. “There must be a balance between Pakistani and Chinese businessmen and both must be provided equal growth opportunities,” he said.

LCCI Senior Vice President Amjad Ali Jawa aired concern over a continued decline in investments from some important countries.

He cited the example of USA which invested $1,309.3 million in Pakistan in 2007-08, but the figure dropped to $209 million in 2014-15. The investment level went further down in July-February 2016-17, when it stood at just $50.3 million.

Likewise, investment from the UK, UAE, Japan and various other countries has also been on the wane. “This issue should be tackled through an aggressive marketing strategy,” Jawa suggested.

Published in The Express Tribune, April 11^th, 2017.

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