Political stability is essential for any investment, especially FDI: Ahsan


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

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

Iqbal stressed that significant FDI is only possible if investors find both economic and political stability in the country.

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

The event also brought together Jamil Ahmad Qureshi, DG Investment Promotion Board of Investment (BOI), Yang Jianduo, Chairman of the Pakistan Chinese Business Association (APCEA), and representatives of relevant government and private sector organizations.

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

The report recommends the simplification of regulatory procedures, coherent and fair tax policies, the supply of energy at a competitive cost and the rapid payment of contributions. “For this, Pakistan must formulate a comprehensive roadmap of institutional and structural reforms.”

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

It also includes a regional comparison, which shows the possibility of significant improvement in most metrics and attributes this as the reason for the Chinese private sector’s reluctance to relocate labor-intensive manufacturing to Pakistan. . Speaking on the occasion, the APCEA President said that through regular interaction between the private sectors of the two countries, better understanding could emerge and that his organization looks to PBC to facilitate it, he said. -he adds.

Jamil Ahmed Qureshi said the BOI was making good progress on a one-stop investment facilitation system and found the PBC’s recommendations constructive and practical.

Ehsan Malik, Managing Director of PBC, closed the event by thanking the guests and assured PBC’s support in identifying gaps in policy space, proposing remedial measures and facilitating closer interaction between local and foreign investors. .

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

It conducts research and organizes conferences and seminars to facilitate the flow of relevant information to stakeholders to help create informed opinion on major issues facing Pakistan.

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