Investment conference

While govt can celebrate participation of international investor, it'll be policies that determine confrence's success

The two-day International Investment Conference concluded in Islamabad recently, with the government attempting to highlight various sectors that could attract, and need, investment to spur the country’s growth. The conference, which featured international participants as well, focused mainly on the energy sector with a healthy debate on the opening day summing up the country’s approach and actual performance. The second day saw Finance Minister Ishaq Dar discussing a “14-point road map” that would steer the country towards prosperity, giving a new meaning to the word cliches and drawing an “all talk no action” reaction from critics. It is quite clear that the energy crisis is one of Pakistan’s biggest hurdles in the way of achieving sustainable economic growth.

In this regard, the government’s statements and calculations that an addition of 17,000MW was needed to meet the energy demands by the year 2020 drew a mixed reaction. In response to the government seeking $20 billion for the power sector, a chief executive officer said that privatisation of power companies was the only solution. He referred to transmission losses and electricity theft, stressing that it was pointless to add more water to the “leaking bucket”, a point well made. It has already been stated that the current state of transmission lines cannot bear the burden of additional electricity. Upgrading the infrastructure, controlling leakage and cracking down on theft must be done first. Privatising state-owned entities has been a difficult task, but delaying what has been promised to the IMF has only put the government in a tighter spot. While the government can celebrate the participation of international investors, who seemed interested during the question-and-answer sessions, it will be the policies that would determine the success of the investment conference. It was heartening to see the turnout and investor interest in Pakistan. The country does offer potential. But it is the policies that hold it back.

Published in The Express Tribune, November 3^rd, 2014.

Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.