PM aide clarifies policy regarding foreign shareholding

Abdul Razzak Dawood stresses need for foreign investment in manufacturing sector to steer value-added exports

KARACHI: There has been no change in government’s policy regarding 100% foreign shareholding permitted in legal entities incorporated in Pakistan, said Adviser to PM on Commerce Abdul Razak Dawood.

During a meeting with members of the Overseas Investors Chamber of Commerce and Industry (OICCI), the adviser resolved the confusion created by a recent statement from some authorities. “To encourage multinational companies to establish joint ventures with local enterprises, the government needs to provide incentives,” he noted.

Stressing on the need for foreign investment in the manufacturing sector to steer value-added exports and import substitution, Dawood assured that a level playing field would be provided to existing and new investors.

The issues highlighted by OICCI members included concerns about effective protection of Intellectual Property Rights (IPR) for trademarks, patents’ and copyrights and to make the Intellectual Property Organization Policy Board functional as it has not met since late 2016.

The PM aide assured the investors that present government, led by Prime Minister Imran Khan, was highly focused on improving ease of doing business.

He reiterated the leadership’s commitment to walk an extra mile to facilitate investment and commerce in the country.  He informed participants that the government would soon announce a new Industrial Policy and National Tariff Policy in coordination with specific sectors, adding that the government was focused on improving interprovincial coordination.

OICCI members expressed growing interest and optimism in the government’s efforts to create a business-friendly environment and urged the government to provide clarity on special economic zones and revised investment policy to further accelerate foreign investment.

Some members were irked on the growing abuse of Afghan Transit Trade Facility impacting the manufacturers in Pakistan, which Dawood added, was already in the knowledge of authorities and “some corrective action will be taken soon”.

Published in The Express Tribune, February 7^th, 2019.

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