Syed Marwan Shah

The Board of Investment (BoI) offers seven priority sectors to domestic and foreign investors to boost economic activity and foreign direct investment (FDI) in the country.

The priority sectors include food processing, logistics, textiles, automobiles, information technology, housing and construction, and tourism and hospitality.

An official of the BoI told WealthPK that Pakistan provides attractive investment in priority sectors for investors due to its unique geo-strategic location, skilled human resources, and untapped growth potential. He said the BoI offers striking incentives and liberal policies that encourage investment in all sectors of the economy. The incentives, available in both traditional and non-traditional sectors of the economy, provide significant opportunities for the business community to invest in the country and reap maximum returns on their investment.

According to WealthPK research, in a country like Pakistan, the FDI is a crucial element in fostering overall economic growth and development. Furthermore, a conducive business environment in the country will help increase foreign investment.

In this regard, the State Bank of Pakistan (SBP) and Securities and Exchange Commission of Pakistan (SECP) continuously strivae to streamline their respective rules and procedures. As a result, Pakistan will be able to expand and modernise its business activities and attract foreign investment. Regulatory conditions have improved in recent years, particularly with the publication of guides and the availability of dedicated helplines for new entrants. Furthermore, significant legislative changes are being introduced, and regulators are working closely with experts and stakeholders to advance these initiatives.

Latest statistics show that Pakistan attracted a total of $1.867 billion in net FDI into its economy in the fiscal year 2021-22. In contrast, in the previous fiscal year, it was recorded at $1.820 billion. The largest contribution to Pakistan's economy came from China, which stood at $531.6 million. In terms of sectors, the power sector attracted the greatest amount of FDI, with $737.6 million contribution to the country's economy.

Tuaha Adil, Research Economist at the Policy Research Institute for Market Economy, told WealthPK that Pakistan has considerable potential in a variety of sectors. He added that Pakistan has affordable labour costs. Although most of the country’s population is young and in dire need of employment, the country must also focus on providing a conducive business environment.

“The government should introduce reforms in tax policies to ensure attainment of FDI because countries with difficult or cumbersome tax policies for payment of taxes and overburdened taxes have faced difficulties in meeting their economic goals,” he said.

Credit : Independent News Pakistan-WealthPk