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Tuesday April 23, 2024

Govt attracted Rs15,730.35bln investment in 5 years

By AFP
March 03, 2018

ISLAMABAD: Total investment in Pakistan increased 55.87 percent to Rs15,730.35 billion during the current government’s tenure from 2013 to 2017 as compared to Rs10,091.70 billion invested from 2009 to 2013.

Officials on Friday said key infrastructure and energy related China-Pakistan Economic Corridor (CPEC) projects helped increase economic activity, which benefitted industry, agriculture, industry, textile and other sectors, due to the spill over effect.

Pakistan’s investment regime is business friendly and has guiding principles that include reduction in cost of doing business, processes of doing business, and ease of doing business.

Also, creation of industrial clusters and seven Special Economic Zones, along with trade, industrial and monetary policies has provided for greater convergence, the officials said.

They added that the liberal investment policy included 100 percent equity ownership, full repatriation of capital, tax breaks, and customs duty concessions on import of plant and machinery and raw materials, which further aided the business environment.

Enumerating key steps taken by the current regime since June, 2013, officials said the overall investment climate has improved and encouraged Pakistani investors to invest in the country as well.

Speaking about the recently constituted steering committee under Prime Minister Shahid Khaqan Abbasi’s, the officials said it would steer and monitor the progress of reforms, and an action plan has been initiated to further improve investment climate and ease of doing business in the country.

“Due to these interventions, a lot of improvement has been made in various steps involved in the business cycle, particularly for SMEs in terms of registering firm, getting construction permit, land registration, paying taxes, trading across borders, access to credit, getting electricity and contract enforcement,” they said.

Inviting input of private sector in policy formulation for development of priority sectors under the public-private dialogues, four Sector Advisory Boards (SABs) have been constituted - Mining and Minerals, agriculture including livestock and fisheries, IT and telecom and industry.

This also helped the government steer investment in infrastructure, energy and other sectors.

The government also took initiatives to improve the energy shortfall, producing 18,900 megawatt last year, which facilitated the local industries.

They pointed out other developments, including improved security situation, six percent interest rate, Auto Development Policy in 2016, establishment of EXIM Bank, upgradation of the Karachi Stock Exchange to Emerging Market Index by Morgan Stanley Capital International (MSCI), as well as Private Investment Protection Act 1976, Economic Reforms Act 1992 Commercial Arbitration Act 2011 and Recognition and Enforcement Act 2011.