‘Pakistan’s investment ratio low’

LAHORE: Minister of State and Board of Investment Chairman Haroon Sharif has said Pakistan needs to double investment-to-GDP ratio from the current 15 percent to accelerate economic growth.

He was talking to the office bearers and members of Lahore Chamber of Commerce and Industry (LCCI) on Monday. The minister said investment-to-GDP ratio in Pakistan was around 15 percent against 30 percent in Sri Lanka, Bangladesh and India.

Sharif said that macro-level target of 25 percent for investment-to-GDP has been set for next five years. The country would have to implement hard reforms to get rid of IMF, and focus on productivity, transfer of technology and job creation. “It is a good sign that foreign investment is rising. There is a very good response from UAE, Saudi Arabia and Korea,” he added.

LCCI President Almas Hyder said the cost of doing business should be brought down to let the local industry survive against imported items. He said BOI should plan to create a special window to provide cheap credit to startups and SMEs. “The SME financing as percentage of private sector financing in Pakistan is only 8.73,” he added.