‘Change in governance key to improving economy’

LAHORE
Change in governance system completely is crucial to improve economic situation and institutions’ performance otherwise foreign investment could not increase due to energy crisis and imbalanced policies.
These views were expressed by experts in Jang Economic Session on ‘How to address foreign investors concerns’, on Tuesday. The panelists were Dr Salman Shah, Aysha Hamid, Imran Masood, Ibarhim Qureshi and Dr Ali Sajid. Sikindar Lodhi hosted the session.
Dr Salman Shah said investment is the major issue of Pakistan while foreign investment cannot increase until local investment protected. He called for reforms in every walk of life in order to utilize the potential of the country. He said $8.4 billion foreign investment arrived in Pakistan after implementation of 2007 reforms agenda while it was expected to grow by $25 billion in next five years while drastically decreased to only $500 million and investment to GDP decline to 12 per cent from 24 per cent.
He believed that rapid urbanization of Pakistan can make it engine of growth. He said the government should take practical steps to improve investment environment.
Aysha Hamid said business-friendly policies needed to protect and promote the investment. She said lack of business facilities and red tapism disturbed both local and foreign investors. She said security is world concern now not alone for Pakistan. But for investor protection, tax holidays and political stability required to promote investment.
Imran Masood said the situation could not improved in Pakistan due to inconsistent policies and political instability while political stability crucial for investment. He said India, Taiwan, Hong Kong, Dubai and many countries increased investment by facilitating the investors. He said protection to investors can repose their trust in Pakistan and addressed their concerns too.
Ibarhim Qureshi said business agreement upto the international standards is the main reason of declining investment. He said legal protections to business agreements and implementation on the agreements can addressed investors concerns. He said 10 per cent tax on foreign companies is irrational while smuggling and tax evasion both are damaging for economy. He called for coordination between the federal and provincial governments to address the investors concerns.
Dr Ali Sajid said increase in foreign investment crucial to eradicate poverty and employment generation. He said foreign direct investment in India and China increased to $60 billion due to tax incentives and facilities given to investors. He called for business-friendly policies for investment protection, establishment of new industrial zones in which special incentives be given to foreign investors.