Muneeb ur Rehman

Removing the impediments to investment in Pakistan can promise sustained growth for the country as better investment climate serves as a significant indicator of overall economic performance. Talking to WealthPK in this regard, Zulfiqar Ali, Director General Reforms in the Board of Investment (BOI), said that the country's insufficient investment levels have become a substantial impediment to the attainment of sustainable growth.

He explained that a notable vulnerability in Pakistan's economic growth trajectory lies in the recurring challenge of cyclic patterns of growth characterised by periods of rapid expansion followed by contraction. “Driven by high consumption, growth is usually achieved that eventually busts due to an inadequate proportion of investment in the country’s GDP,” he pointed out.

Source: Trading Economics

Zulfiqar Ali said that Pakistan's investment-to-GDP ratio hit a record low at 13.5%, highlighting concerns about unemployment, poverty and development. “In order to put the country on the track of sustained growth, reducing the obstacles in the way of investment is of primary importance.” However, he said the government’s endeavours to establish an environment conducive to investment would yield positive results. He mentioned certain measures taken by the government to improve investment climate.

He said the launch of The Pakistan Investment Policy 2023 would establish a robust foundation for the nation's economic advancement, positioning it as an alluring investment hub within the South Asian region. “The proposed policy is formulated to provide an array of attractive incentives to prospective investors, including exemptions from taxation, diminished or waived customs duties and accommodative repatriation regulations,” he added. Furthermore, he said the policy was meticulously crafted to effectively tackle the primary apprehensions of potential investors like policy predictability, transparency and availability of financial resources, safeguarding the rights and interests of the investing parties. Zulfiqar Ali lauded the government’s initiative of establishing the Special Investment Facilitation Council (SIFC).

“The council will play a key role in promoting the country as an attractive investment destination. The core objective of the council is to provide ease for investors by removing bottlenecks in the form of delayed decisions, bureaucratic hurdles, and lack of coordination among government departments.” Highlighting the success stories of the East Asian developing countries, Zulfiqar Ali said that the economic milestones achieved by these countries were largely attributed to the high investment-to-GDP ratio thanks to their export promotion policies. “It can be hoped that the initiatives the government is taking will help improve the investment climate in the country.”

Credit: INP-WealthPk