Govt rolls out reforms to boost investor trust, spur growth

May 24, 2024

Qudsia Bano

To enhance investor confidence and stimulate economic growth, the government has announced a series of reforms aimed at streamlining bureaucratic processes and providing new incentives for both domestic and international investors. This initiative is part of a broader strategy to position Pakistan as a more attractive destination for investment and to accelerate economic development, reports WealthPK. Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb unveiled these measures during a press conference at the Finance Division. He emphasized the government's commitment to creating a more business-friendly environment by reducing red tape, enhancing transparency, and ensuring a stable regulatory framework. The simplification of regulatory procedures is a key measure, which aims to reduce the time and cost associated with starting and operating a business in Pakistan. The government plans to introduce a single-window clearance system to streamline the approval process for new investments, making it easier for investors to navigate the regulatory environment.

“The government is set to launch a series of financial incentives designed to attract foreign direct investment (FDI). These include tax breaks, reduced tariffs on imported capital goods, and grants for technology and infrastructure development. The incentives are particularly targeted at high-potential sectors such as information technology, renewable energy, and agriculture,” said an official at the Securities and Exchange Commission of Pakistan (SECP). Talking to WealthPK, Shahid Javed, an economist at the State Bank of Pakistan (SBP), highlighted the importance of improving Pakistan's ease of doing business ranking, which has been a priority for the government. “We are committed to making Pakistan one of the top destinations for business and investment in the region. Our reforms are designed to provide a conducive environment where businesses can thrive, thus creating jobs and driving economic growth,” he said. “The government's focus on digital transformation is another critical component of the reform agenda. By enhancing the digital infrastructure and promoting the adoption of digital financial services, the government aims to increase financial inclusion and boost the efficiency of financial transactions.

This move is expected to foster innovation and competitiveness in the economy,” said Shahid. In a related development, the government recently hosted a delegation of international investors to discuss the country's economic dynamics and investment prospects. Organized by the Standard Chartered Bank, the meeting featured discussions on macroeconomic stability, tax initiatives, and privatization plans. The dialogue underscored the government's efforts to engage with global investors and reinforce their confidence in Pakistan's economic future. With these comprehensive measures, Pakistan is poised to make significant strides in attracting investment, fostering economic resilience, and achieving sustainable growth. The government's proactive approach to reform is set to pave the way for a more prosperous and dynamic economic landscape.

Credit: INP-WealthPk