Economic revival: Inflow of foreign capital steals the limelight
Business forum chief asks govt to facilitate local businesses like foreign investors
“Putting aside the energy crisis, the outflow of capital from Pakistan is one of the major issues afflicting the economy,” said All Pakistan Business Forum (APBF) President Ibrahim Qureshi. DESIGN: ESSA MALIK
LAHORE:
The influx of foreign investment reflects an exceptional sign of economic recovery. However, some believe that facilitation of local businesses carries more importance keeping in view the lost momentum of Pakistan’s economy.
“Putting aside the energy crisis, the outflow of capital from Pakistan is one of the major issues afflicting the economy,” said All Pakistan Business Forum (APBF) President Ibrahim Qureshi while talking to The Express Tribune.
“This is due to the prospect of international investment being more investor-friendly in comparison to investment in Pakistan.”
Qureshi urged the government to facilitate existing investments of businessmen by at least providing rebates that are being offered to multinationals or other foreign investors.
“The current government is focusing more on creating an extra liberal investment regime for foreign investors rather than protecting local businesses, which are the victims of energy crisis, law and order situation, taxation and sales tax refund issues,” he added.
“Such circumstances have forced many local investors either to relocate their units to nearby countries or to permanently close their businesses and pour capital into another sector.”
The APBF chief said last year’s investment worth $2.06 billion by Pakistanis in Dubai’s real estate market is the prime example of capital flying overseas. “India, on the other hand, is protecting its industry and is achieving high levels of economic growth, with footprints of local companies expanding globally.”
Qureshi added they first created the Punjab Business Forum but later realised that a national body was required to address the issues which were not restricted to provincial boundaries.
Apart from the local business community, there are concerns for foreign investors as well. The APBF chief said despite assurances by successive governments, multinationals and their local partners have faced the issue of return on their investments.
Foreign investors are more concerned about intellectual property rights (IPR) before they start production in Pakistan as they fear unauthorised copying of their products.
Qureshi stated that despite the presence of regulations, there is a lack of implementation of corporate law in Pakistan.
Along with the documented economy, there is a parallel economy – bigger in size – which is hurting legal businesses.
Qureshi, who also introduced the Apple brand in Pakistan back in 2007, has been hit by the smuggling of goods. “We introduced Apple in the local market when people hardly knew about it,” he said. “But now our actual sales have dropped to one-third of the peak mainly because of smuggled products from Middle Eastern countries.”
Still there is hope. “Our workforce – especially the youth – is our primary asset,” he said. “But it is in dire need of technical training in line with global trends of the digital age.”
Published in The Express Tribune, May 22nd, 2015.
The influx of foreign investment reflects an exceptional sign of economic recovery. However, some believe that facilitation of local businesses carries more importance keeping in view the lost momentum of Pakistan’s economy.
“Putting aside the energy crisis, the outflow of capital from Pakistan is one of the major issues afflicting the economy,” said All Pakistan Business Forum (APBF) President Ibrahim Qureshi while talking to The Express Tribune.
“This is due to the prospect of international investment being more investor-friendly in comparison to investment in Pakistan.”
Qureshi urged the government to facilitate existing investments of businessmen by at least providing rebates that are being offered to multinationals or other foreign investors.
“The current government is focusing more on creating an extra liberal investment regime for foreign investors rather than protecting local businesses, which are the victims of energy crisis, law and order situation, taxation and sales tax refund issues,” he added.
“Such circumstances have forced many local investors either to relocate their units to nearby countries or to permanently close their businesses and pour capital into another sector.”
The APBF chief said last year’s investment worth $2.06 billion by Pakistanis in Dubai’s real estate market is the prime example of capital flying overseas. “India, on the other hand, is protecting its industry and is achieving high levels of economic growth, with footprints of local companies expanding globally.”
Qureshi added they first created the Punjab Business Forum but later realised that a national body was required to address the issues which were not restricted to provincial boundaries.
Apart from the local business community, there are concerns for foreign investors as well. The APBF chief said despite assurances by successive governments, multinationals and their local partners have faced the issue of return on their investments.
Foreign investors are more concerned about intellectual property rights (IPR) before they start production in Pakistan as they fear unauthorised copying of their products.
Qureshi stated that despite the presence of regulations, there is a lack of implementation of corporate law in Pakistan.
Along with the documented economy, there is a parallel economy – bigger in size – which is hurting legal businesses.
Qureshi, who also introduced the Apple brand in Pakistan back in 2007, has been hit by the smuggling of goods. “We introduced Apple in the local market when people hardly knew about it,” he said. “But now our actual sales have dropped to one-third of the peak mainly because of smuggled products from Middle Eastern countries.”
Still there is hope. “Our workforce – especially the youth – is our primary asset,” he said. “But it is in dire need of technical training in line with global trends of the digital age.”
Published in The Express Tribune, May 22nd, 2015.