Overseas investors stress true implementation of policies

Term Pakistan’s investment policies more attractive than regional powerhouses.

ISLAMABAD: Investment policies in Pakistan are more attractive in comparison to countries like China, India, Thailand, Malaysia and Sri Lanka, but what is lacking is a true implementation of the policies with the need to fill the gap to make Pakistan even more investment friendly.

These were the views of Overseas Investors Chamber of Commerce and Industry (OICCI) President Asif Jooma, who was addressing the annual gathering of OICCI at the Presidency on Thursday.

In order to address the gap, he called for a formal quarterly, if not monthly, review of the top 10 issues faced by foreign and local investors.

“We have seen this system work in our businesses and would be happy to share with the government an outline of the proposed system, if desired,” he said.

He also recommended a structured performance monitoring process for all key government functions directly linked to economic, business and industrial growth.

Jooma pointed out that the presence of top executives of multinational businesses in Pakistan, who represent some of the Fortune 500 companies, and more significantly important guests like Merck Global Chairman Karl-Ludwig Kley, who is also the BMW vice chairman, was testimony that the global business community gave immense importance to Pakistan.

Highlighting the role played by OICCI in community development programmes, Jooma said OICCI member companies were engaged in numerous such programmes, providing a sustainable source of income generation for the less fortunate people.

With 189 member companies, OICCI says they have contributed more than Rs2 billion in relief efforts following the floods in 2010.



Though OICCI members had the capacity to provide greater revenues, increase investment, enhance job opportunities and contribute more to CSR activities, this potential was not being adequately realised, Jooma added.

According to OICCI, its member companies contribute more than 20% to the country’s gross national product (GNP) and tax revenues besides providing direct and indirect employment to over a million people.

He said despite advocating Pakistan at every forum by marketing the opportunities it provided, there were not many tangible business launches on the ground. This was reflected in the decline in foreign direct investment in Pakistan, which fell to mere $813 million in 2012, compared to twice that level in 2011.

In spite of the fall in external inflows, he said, OICCI members had invested $1 billion from retained earnings to further expand their operations in Pakistan.

He pointed to the low tax-to-GDP ratio as one of the major issues afflicting the economy and said inability to expand the tax net continued to overburden the documented corporate sector.

Discussing the issue of intellectual property rights, he said the relevant law was awaiting ratification from the president. “Should this happen, Pakistan will be better placed in future reviews of the US 301 watch list, which will positively impact the flow of FDI into the country.”

Published in The Express Tribune, December 8^th, 2012.