BoI seeks business community’s help to attract FDI

Says investment policy needs to be formulated to attract inflow

KARACHI: In an effort to attract local as well as foreign direct investment (FDI), the Board of Investment (BoI) has sought the business community's help in framing an impactful policy that enhances productivity and increases the ease of doing business.

BoI Secretary Mohammad Jehanzeb Khan met Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Senior Vice President Mazhar Ali Nasir at the Federation House on Friday.

Khan said that the business community can play its role in persuading stakeholders across the country to capitalise on opportunities with focus on value addition.

He said that Pakistan's investment policy needs to be formulated to create a friendly environment with focus on further opening up the economy and attracting FDI.

"It should provide equal treatment to foreign and local investors. This could be achieved with support and input from the FPCCI, which could serve as a bridge between the private sector and the government," Khan said.

Pakistan attracted a paltry $2.76 billion as FDI in fiscal year 2018, an improvement of less than 1% year-on-year. FDI plays a crucial role in a country's current account balance, which in Pakistan's case has run into a whopping deficit of $17.99 billion in FY18.



Khan said the BoI wants to promote local entrepreneurs to set up industries in the country. He reviewed a presentation made by FPCCI comparing the incentives and opportunities Pakistan offers to foreign investors with the ones in other countries.

"Pakistan has lagged behind in providing business opportunities compared to other countries in the region. Therefore, there's a need for regular interaction and consultation to prepare policies that are attractive for foreign investors," he said.

Meanwhile, Nasir said that the FPCCI would prepare a draft investment plan 2019 as requested by the BoI in order to help them understand the psyche of investors.

"There's a need to garner Pakistan missions abroad with commercial interest to promote investment opportunities," he said.

Meanwhile, investment under CPEC was also discussed and both the parties concurred that Pakistani entrepreneurs should also be provided with a level playing field.



"There are tough days ahead of Pakistan with regards to depleting foreign exchange reserves," Nasir told The Express Tribune.

"The economies of Middle Eastern countries are under pressure and they have started laying off Pakistani labour and employees. Remittances would fall in times to come, which would further aggravate Pakistan's economic woes," he said.

He added that there is an urgent need to attract FDI and stimulate local economic activity.

Published in The Express Tribune, August 18^th, 2018.

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