KARACHI: The Overseas Investors Chambers of Commerce and Industry (OICCI) on Thursday expressed concern at the sharp decline in foreign direct investment (FDI) during the first four months of the current fiscal.
The chamber representing nearly 200 largest foreign investors has recommended a strong and focused approach by the concerned authorities to rejuvenate FDI into the country.
“One fails to understand that in spite of notable improvement in the economic parameters and security environment, especially in Karachi and good progress in narrowing the energy supply gap, why has the country not been able to win the confidence of the potential foreign investors who continue to invest heavily in the region,” OICCI President Shahab Rizvi said.
The government needs to immediately engage with the key stakeholders, both at home and overseas, to revise it policies and action plans to recapture the proportionate share of FDI lost to regional countries, he suggested.
According to OICCI’s assessment, key impediments to FDI inflows include, Pakistan inconsistent track record on ensuring consistency, predictability and transparency in the overall investment and business related policy framework, poor ranking in World Bank ‘Ease of Doing Business’ indices, inconsistent taxation policies and uneven implementation of regulations.
The OICCI chief recommended that to reverse the negative trends in FDI, the government has to improve governance and accountability together with close interaction with respectable business representatives, like OICCI, supported by a structured public private partnership for timely corrective measures to ensure that FDI inflow is at an acceptable level of at least 2-3 per cent of the GDP.
Enhanced level of FDI was necessary to rapidly expand exports, provide employment and collect more revenue for the national kitty.
One of the tools the government could strongly use to solicit new foreign investors by highlighting the positive experience of existing foreign investors, Mr Rizvi added.
Courtesy : Dawn News