Nazim Latif, pointman for the scheme, says businessmen can be insured for $200,000, $300,000 or $500,000, depending on their length of stay. DESIGN: JAMAL KHURSHID
ISLAMABAD: Plagued by terrorism and sectarian violence, Pakistan is offering to insure foreign businessmen to attract overseas investment, officials said Wednesday.
A series of wealthy countries, including Australia, Britain and the United States have issued travel advisories against non-essential travel to Pakistan and this makes insurance unavailable or very expensive for citizens who wish to visit.
Islamabad says more than 35,000 people have been killed as a result of terrorism in the country since the 9/11 attacks on the United States. External inflows into Pakistan had declined to $813 million in 2012, compared to twice that level in 2011.
But the government hopes that by offering insurance to foreigners invited to Pakistan on business, it can help revive the flagging economy.
According to the International Monetary Fund, the Pakistani central bank's foreign exchange reserves declined to under $10 billion in October and the deficit, excluding grants, hit 8.5 per cent of gross domestic product last year.
"Any private or public entrepreneur inviting foreign businessmen or investors will now be responsible for providing insurance cover to their guests through the National Insurance Company (NIC)," said commerce ministry spokesman Abdul Kabir Kazi.
"We have launched the scheme immediately and asked the foreign office to dish out information about the scheme to all Pakistani missions abroad to benefit foreign investors and businessmen," he told AFP.
Nazim Latif, pointman for the scheme, said businessmen can be insured for $200,000, $300,000 or $500,000, depending on their length of stay.
"The premium for the above products will be $75, $150 and $225 respectively if a buyer stays in Pakistan for a week; and $250, $350 and $500 for a stay beyond a month," he told AFP.
In the event of death, the NIC will pay out the full compensation and in case of injury, $6,000, $7,000 or $8,500 per week for medical treatment.
"Normally, foreigners hesitate to visit Pakistan in business deals because of the law and order situation in the country. We are introducing this scheme as a tool to offer them peace of mind when they come to our country," Latif said.
COMMENTS (6)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
A question - why a foreigner would like to invest in Pakistan. The purpose is to maximize their long term returns on the investment . Points considered will be potential, economy,. political stability for the consistency in policies. So the factors which are conducive to attract investments are a must for FDI ( Foreign Direct Investment). Offering personal insurance alone is not enough to attract FDI.
Moreover there are many other destinations available across the globe where returns are maximize able with lower risks which are better and preferred choices for foreign. Investors.
So you actually think business come to Pakistan without insurance? Why dont you ask the police to do their work? Why are the roads from FATA anf Afg in KÅ open? How can local police dont know who are visiting their county and such.
Don't promise anything that SC will strike down. When courts run the economy, no one would come.
Unless you change FBR,no foreign investment will come
Offering insurance for foreigners will NOT not help help flagging Pakistan economy. Every day LAWLESSNESS is increasing and more sections of the society is feeling greater pain. Every one wants to leave and say goodbye. Decades of governance by illiterate and corrupt is responsible. We are taking 2 steps forward and 4 steps back.