Political stability must for any investment, especially FDI: Ahsan

ISLAMABAD: Planning minister Ahsan Iqbal has said a whole-of-government consistent approach in a stable political environment is necessary to promote any investment, especially foreign direct investment (FDI) in the country.

He was speaking to a launch event Pakistan Business Council’s (PBC) report ‘Catalyzing Private Investment in Pakistan: Leveraging the CPEC Opportunity’.

Iqbal emphasised that a significant FDI was only possible if investors found both economic and political stability in the country.

He supported the need for export-oriented investment and also sought active support from the PBC to shape policies.

The event was also attended by Jamil Ahmad Qureshi, DG Investment Promotion Board of Investment (BOI), Yang Jianduo, chairman All Pakistan Chinese Enterprises' Association (APCEA), and representatives from the relevant government and private sector organisations.

The study published by PBC discusses Pakistan’s investment performance and attractiveness for FDI with respect to law and order, fiscal policy, labour productivity, infrastructure, energy, logistics and market access. It also includes a section on issues faced by Chinese investors in Pakistan.

The report recommends simplification of the regulatory procedures, consistent and equitable tax policies, provision of energy at a competitive cost and timely settlement of dues. “For this Pakistan needs to formulate a comprehensive roadmap of institutional and structural reforms.”

As per the report, Pakistan’s FDI-strategy needs to focus more sharply on exports, advanced manufacturing, value-added agriculture, and electronics, among others.

It also includes a regional comparative, which shows scope for significant improvement in most parameters and ascribes this as the reason for hesitancy of the Chinese private sector to relocate labour-intensive manufacturing to Pakistan. Speaking on the occasion, APCEA chairman said through regular interaction between the private sectors of the two countries, better understanding could emerge and that his organisation looked to PBC to facilitate it, he added.

Jamil Ahmed Qureshi said the BOI was progressing well on a single-window investment facilitation system and had found PBC’s recommendations constructive and practical.

Ehsan Malik, chief executive officer PBC, closed the event by giving a vote of thanks to the guests and assured PBC’s support to identify gaps in the policy space, propose remedial steps and facilitate closer interaction between local and foreign investors.

PBC is a business policy advocacy platform, supported by a 100 private sector companies, both local and multinational. They come from 17 major sectors of the formal economy, generate around 40 percent of annual exports, and contribute a third of country’s total tax revenues and employ three million.

It conducts research and holds conferences and seminars to facilitate the flow of relevant information to stakeholders to help create an informed view on the major issues faced by Pakistan.