Protecting expat investments

The National Assembly’s Standing Committee on Overseas Pakistanis has alerted the government that the state must do more to protect investments made by overseas Pakistanis. It is true Pakistan remains economically afloat because of the financial resources brought into the country by expatriate workers. If patriots are eager to return their wealth to the country — through legal channels and for legitimate purposes — out of their love for the land, their assets should be protected rather than being affected by litigation delays and red tape. It is never in the best interest of the country to dissuade investors of any kind.

Attention sought towards the matter of Islamabad property purchased by two Pakistani investors has raised concern of the possibility of foul play. Unfortunately, deep-rooted corruption that comprises some of the economic foundations of this country spreads through to business transactions quite regularly. The investors fighting the cases have incurred massive losses. This is not only due to sticky laws but allegedly because of the property being gifted to prominent figures. Unless we can stop our obsession with free handouts to people who have political or otherwise important status, trust cannot be fostered. This is especially a critical point to pay heed to ahead of elections. Just last week, the State Bank of Pakistan released data that foreign direct investment in March 2018 was 52 per cent lower than it was in March 2017.

Although FDA has increased overall in the first three quarters compared with the same time in the last fiscal year, regulations may lead to hesitation on the part of investors in light of such cases. Pakistan has long had a policy of taking and never one of reciprocity. Legal frameworks should be revisited so as to encourage investors by establishing regulatory laws that would protect their resources instead of entangling them in legal hurdles.

Published in The Express Tribune, April 22^nd, 2018.

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