Overseas investors demand ‘urgent’ growth agenda

KARACHI: Foreign investors are expecting the new government to soon unveil growth-oriented economic and trade strategies to keep them bullish on Pakistan’s economy, an industry’s top official said on Thursday.

“(The) support for economic growth and investment from OICCI (Overseas Investors Chamber of Commerce and Industry) members should not be taken for granted, as sentiments are dependent upon the expectations that the government will soon unveil growth-oriented economic and trade strategies, especially some practical out-of-box new policy initiatives…,” the OICCI president Irfan Wahab said.

Wahab told media that Pakistan has the potential to absorb foreign direct investment (FDI) of at least three percent of GDP as compared to less than one percent of GDP received in the past six years.

“What is expected is an improved governance structure, solid progress on improving Pakistan’s positioning on World Bank’s ease of doing business parameters, supported by strong economic performance,” he said in a statement.

“There is a great opportunity for significant productivity gains through research and digitalisation in agriculture, energy and water resource management.”

Members of the OICCI, representing 200 foreign investors in Pakistan, have re-invested more than $2.7 billion in the country during the past one year despite the lackluster economic activity.

The investment by OICCI members was almost at par with the total FDI of $2.8 in the country during the same period. In the past six years, OICCI members have re-invested $10.4 billion, whereas FDI inflow in the country was only $11 billion FDI during the period, “which reflects the extreme confidence of the leading foreign investors, who are already operating here, on opportunities in Pakistan”.

“The OICCI members continue to remain upbeat, based on their experience of operating in the country, and they have full confidence in the economic potential of Pakistan,” Wahab said.

The OICCI 2017 perception survey of foreign investors – which covers OICCI members only – also reflected positive sentiments, as over 70 percent members had indicated plans

to make additional investments in the country and recommended Pakistan to potential new foreign investors.

Secretary General OICCI Abdul Aleem said the country is a highly attractive market for investors. “As an example, many international agencies have already assessed Pakistan’s retail sector as one of the fastest-growing markets in the world and worth approximately $150 billion,” Aleem said.

“Pakistan is on the radar of most of the potential foreign investors who value the growth opportunity in the longer term.” Aleem, citing a recent report by the Hongkong and Shanghai Banking Corporation, said Pakistan is poised to be among the top six fastest-growing global economies by 2030, confirming a similar assessment by other reputable international agencies.

OICCI members emphasised the need of focus on economic priorities, political stability, and measures to improve Pakistan’s ranking in competitiveness and ease of doing business indices.

They called for policies to boost exports, bridge the gap in the balance of trade and payments and to attract FDI and local investment to revitalise the economy and put the country back on a fast track of growth. They called for effective use of technology to broaden the tax base, strict enforcement, accountability and capacity building in the key government functionaries.

OICCI stressed a need for sharing of success stories of businesses to attract new investment and boost confidence and inculcate a culture of success especially among the youth of Pakistan.

OICCI is regularly promoting the potential of Pakistan and the success stories of foreign investors in the country to visiting foreign business delegations, senior diplomats and the media, even at international forums.