Industrial investment on the wane

If left unchecked, businessmen fear economic stagnation.

FAISALABAD:

Domestic industrial investment in the country is on the decline because of adverse conditions and apathy of the government towards business, trade and industry, says a leading businessman.

Talking to the media here on Saturday, Faisalabad Chamber of Commerce and Industry President Mian Zahid Aslam said heavy borrowing by the government from banks was one of the major reasons contributing to the anti-industrial and anti-trade climate.

Elaborating, he said the banks were not providing sufficient credit to the industry and business to enable them to run their mills and manufacturing units efficiently, adding they needed continuous pouring of fresh credit to keep the wheels of industry moving.

However, banks were more inclined towards investment in government securities and bonds that promised a high rate of return compared to loans provided to the private sector.

Besides local investors, Aslam said, foreign investors were also shy of entering the Pakistani market, keeping in view the unstable and highly discouraging business and industrial climate in the country.

Citing the reasons for their reluctance, foreign investors point to the law and order situation, insecurity of goods during transport, weak governance, lack of long-term planning and ad hoc administrative measures.

Aslam stressed that unless a proper investment environment was created, no foreign investment would flow into the country and the industry and business as well as the overall economy would face stagnation.

Published in The Express Tribune, December 2^nd, 2012.