Govt urged to improve investment environment

Former minister for investment Muhammad Azfar Ahsan has stressed the need for Pakistan to give priority to optimising its current investments and advocated a strategy that mainly focuses on nurturing the existing investors rather than concentrating on attracting new investment.

Ahsan spoke at a talk hosted by the China Pakistan Study Centre (CPSC) at the Institute of Strategic Studies Islamabad (ISSI) on the topic of "Pakistan's Investment Landscape: Challenges, Opportunities and Way Forward."

He emphasised that sustainable economic growth and stability could only be achieved by consolidating resources, improving capacity building, and creating an enabling environment for investors.

Comparing Pakistan's investment track record with its regional competitors and other countries, he highlighted that the country attracted $49 billion in foreign investment over the last 25 years, averaging $2 billion annually.

In comparison, smaller African nations attract $3 billion annually, Bangladesh secures $3.5 billion and India pulls in $50 billion every year. "This disparity reflects the need for a coherent national strategy and reforms to improve Pakistan's competitiveness," he said.

Ahsan also raised concerns about Pakistan's rapidly growing population, which was expected to reach 400 million by 2047.

Highlighting the need for policy continuity and long-term planning, he mentioned India's IT sector, which was generating $200 billion annually. He emphasised that a strong educational system, consistent policies and strategic government initiatives were the key to replicating such a success in Pakistan.

To address the challenges, he proposed the creation of a 'Charter of Business', a comprehensive economic strategy approved by parliament, ensuring continuity across different government tenures. "We need policies that are not affected by changing governments," he asserted.