Economic experts and investors in Pakistan have presented proposals to boost foreign direct investment (FDI) in the country. These recommendations reiterate the importance of creating a secure and healthy environment, simplifying regulations, and the provision of attractive incentives to investors.
In discussions with The Express Tribune, experts highlighted the significance of simplifying regulations and reducing bureaucratic obstacles to create a favourable investment climate. A streamlined, one-window operation for company setup was suggested to facilitate investors and ensure a hassle-free experience.
Addressing challenges related to inadequate health workforce and facilities, experts stressed the need to focus on providing quality healthcare to foreign investors. They stressed that a stable and secure environment is crucial for FDI, as investor confidence is strengthened when they perceive an environment that safeguards their assets and allows for the repatriation of dividends.
Noman Said, CEO of SI Global Solutions and an investor, stated, “Implementing a streamlined, one-window operation for company setup facilitates investors, acting as a liaison between investors and statutory bodies, thus ensuring a hassle-free experience. By embracing these measures, Pakistan can foster an environment that not only attracts foreign investments but also propels its economic growth. The trajectory of FDI, though witnessing fluctuations, underscores the potential for further advancements with continued strategic efforts.”
He highlighted recent reforms in Pakistan’s investment policy, such as the abolition of the minimum equity requirement for foreign investment, as a positive shift. The Special Investment Facilitation Council (SIFC)’s strategic focus on technology aligns with attracting foreign investment, with an emphasis on converting Memorandums of Understanding (MOUs) into tangible sales.
President and CEO of the Pakistan Freelancers Association (PAFLA), Tufail Ahmed Khan said, “Sustainable and consistent industrial policies following incentives like tax holidays can attract foreign investment in Pakistan, while establishing the Special Investment Facilitation Council (SIFC) augurs well to scale up foreign investment in high-potential sectors.”
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He called for the promotion of economic reforms and the liberalisation of key areas to make Pakistan more attractive for foreign companies. Khan stressed the importance of investment in infrastructure development, including transport and digital connections, to increase the country’s competitiveness. Active marketing and promotion of Pakistan as an investment destination were deemed crucial, to be done under the banner of the SIFC through embassies, consulates, and chambers of commerce.
Investors stressed the need for a proactive governmental stance and the cultivation of a conducive business environment to attract foreign investments. They said that initiatives encompassing political stability, economic reforms, and strategic tax incentives form the bedrock of such an approach. Substantial investment in infrastructure development, including robust transportation networks, cutting-edge power plants, and telecommunication systems, was deemed critical. These developments not only foster efficient business operations but also serve as a magnet for foreign investors, they urged.
Addressing the pressing issue of traffic regulation was highlighted as paramount, as the chaotic state of traffic not only reflects on the nation’s behaviour pattern but also contributes to a surge in road accidents. Implementing measures to enhance road safety, particularly for motorbikes, is essential to curb the rising toll of accidents and fatalities.
They also highlighted the urgent need to address energy crises, as intolerable energy crises, following frequent power outages and prolonged power load shedding, are a nightmare for foreign investors.
Published in The Express Tribune, January 25th, 2024.
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