‘International conference to attract foreign investment’

LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) has expressed the hope that the International Investment Conference in Islamabad and Lahore would pave the way for the much-needed foreign investment.
LCCI President Sheikh Muhammad Arshad, Senior Vice President Almas Hyder and Vice President Nasir Saeed on Wednesday said that such events should be meaningful, as foreign investment plays a critical role in the economic uplift of any country.
By encouraging foreign direct investment, Pakistan can gain technological advancement, knowledge and expertise from the global arena; therefore, every possible step should be taken to make this piece of land attractive for foreign investors, they said.
"Measures to encourage investment are especially important in the country, as this is an area where we have long been at a disadvantage despite having all resources," the LCCI office-bearers said.
They said that those obstacles should be removed through a positive approach and practical steps, which are coming in the way of FDI in Pakistan and top of the list is the cost of doing business.
Pakistan ranks worse than other countries of the region as far as the cost of doing business is concerned, they said.
LCCI President Sheikh Muhammad Arshad said severest-ever energy shortfall, poor law and order situation, institutional fragility and the political instability were the major factors keeping the foreign investors away.
He urged the government to initiate meaningful discourse with the private sector to boost foreign direct investment that is not up to the mark.
"Though Pakistan ranks 62nd in the FDI-friendly countries, but that does not reflect its potential and available resources," he said, adding that there is a dire need to promote economic vitality by strengthening the private sector, as internal dynamism has faded away due to acute energy shortage, deteriorating law and order situation and political instability.
Arshad said that the rising risk perception about investing into Pakistan is hitting hard the entire economy and needs to be tackled through a comprehensive policy approach by involving chambers of commerce in the country.
LCCI Senior Vice President Almas Hyder said that in the recent past, decline in the foreign direct investment has adversely affected the country's economic growth. The government should adopt prudent measures to attract foreign investment so that the country comes out of the lopsided interest of foreign investors, he added.
Aggravating energy crisis is also spoiling not only the local investment scenario, but also sending a very negative signal to potential foreign investors, he said.
Hyder said that a special committee comprising members of the parliament, presidents of chambers of commerce and industry and representatives of the sector-specific associations should be formed to identify the solutions and to attract foreign investment that is a prerequisite to the economic growth.
The LCCI office-bearers said that the proposed committee should also be tasked to look into the existing policy framework and if there is a need to redesign new policies it should immediately initiate work on them.
Key issues, including power shortage and other vital factors, should be addressed on a priority basis to improve the foreign investment condition and to put the country on track of economic growth and development.
"At the same time, the government should ensure that all institutions remain immune to any sort of undue interference, as this will help improve the quality of governance without which foreign investment cannot be attracted."