Business forum concerned over declining FDI

Official says govt has failed to attract investment despite improvements

LAHORE: The government has failed to attract significant investment despite significant improvements in the energy infrastructure and security condition of the country, said All Pakistan Business Forum () President Syed Maaz Mahmood.

According to a press statement issued on Saturday, the business forum raised serious concerns over the declining trend of the foreign direct investment (FDI) in the country, which plunged by over 58% during the first two months of the current fiscal year 2019-20.

The APBF president was of the view that drastic steps and robust political will could revive the economy so it could grow significantly and constantly while displaying a visible impact. Mahmood advocated the need for widening the country’s tax base in a bid to uplift tax-to-GDP ratio from its current poor level.

He urged trade officers to explore opportunities to diversify export of goods and services in their respective areas, asking them to meet the challenges that the country was facing in European markets.

The APBF official suggested the ministries devise strategies for promotion of Pakistani products calling upon trade officers to take full advantage of the opportunities offered by the China-Pakistan Economic Corridor (CPEC).

“Weak FDI data is a massive setback to the government, which has recently entered into the $6 billion reform programme led by the International Monetary Fund to avoid balance of payments crisis,” he said. “Government has taken several measures to curb imports but it has failed to enhance exports despite massive depreciation of the rupee against the US dollar.”

It is pertinent to mention that FDI during July-August 2019 fell to $156.7 million as opposed to $377 million recorded in the same period of the previous year.

On a month-on-month basis, the FDI inflows in August declined by a massive 57.8% to $83.4 million from $198 million in August 2018.

The data for Foreign Portfolio Investment (FPI) rose by a massive 182.8% to $107.3 million against an outflow of $129.6 million during the same period last year.

Published in The Express Tribune, September 29^th, 2019.

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