FPCCI concerned over declining foreign direct investment in Pakistan
KARACHI: Engr. Daroo Khan Achakzai, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has shown his serious concern over the declining of Foreign Direct Investment (net) in Pakistan which stood at US$ 1.3 billion in the first ten month of FY19 compared to US$ 2.8 billion last year same period. [the_ad id="32940"]Foreign public Portfolio investment represent investment in equity market and debt securities stood negative US$ 990 million in first ten month compared to last year same period US$ 2.4 billion. He stated that the declining trend generally indicates that foreign investors are reluctant to make investment in Pakistan due to economic uncertainty, infrastructure backwardness and other bureaucratic hurdles. Moreover, there is an increasing trend in the outflow of FDI and as per SBP statistics, in first 10 month, Approx. US$ 1.3 billion has outflow compared to last year same period US$ 591 million. He further indicated that FDI inflow as % of GDP i.e. 0.92% is very low compared to regional economies such as Vietnam, 6.3% of GDP, Malaysia, 3.02%, Maldives 2.5%, Sri Lanka 1.5%, India 1.94%, Bangladesh 1.05%, Turkey 1.5%,Turkmenistan 6.0%, Philippines 3.2%, South Korea 1.4%, Cambodia 12% etc. He underscored that there should be rises in Foreign Direct Investment (FDI) from China and other countries in the backdrop of China Pakistan Economic Corridor (CPEC) which is a mega project committed to bring investment from China and increase the connectivity of Pakistan with Middle Eastern, Europe and Central Asian countries. The President FPCCI urged the Prime Minister of Pakistan and the concerned agencies of public sector responsible for promotion of investment to set targets and should disseminate the investment opportunities of Pakistan at national and international level and highlights that there is highly liberalized and business friendly investment policy in Pakistan which offers many incentives to investors and allowed repatriation of profit. At present, the law and order and energy situation in Pakistan has improved which indicates favorable environment for investment in Pakistan. He urged Board of Investment and Government of Pakistan to take remedial measures for restoring the confidence of investors and projecting the soft image of Pakistan. Engr. Daroo Khan Achakzai urged the government to create coordination among the federal and provincial investment Boards for making feasibilities and marketing the investment projects. Moreover, the Pakistani mission abroad should be involved in highlighting the joint ventures investment opportunities and disseminate the information related to investment projects to the concerned investment agencies of their posted countries. They may be given specific target of foreign investment according to the market size of their country of posting.