Fozia Azam

Recognising the significance of a robust investment climate for economic growth, Pakistan is planning to establish an Investment Ombudsman as part of its Investment Policy 2023. “This initiative aims to provide a platform for resolving investment-related grievances, streamlining processes, and fostering a transparent and investor-friendly environment,” said Zulfiqar Ali, Director General of Pakistan Regulatory Modernisation Initiative (PRMI) at the Board of Investment (BOI), while talking to WealthPK. He said that the idea of establishing the Investment Ombudsman, a dedicated mechanism to address concerns and provide redressal, signifies the government's commitment to attract and retain both local and foreign investors. “A prime objective of establishing an Investment Ombudsman is to enhance investor confidence in Pakistan's business landscape.

With a neutral third-party authority to handle grievances, investors can be assured that their concerns will be addressed fairly and expeditiously,” he added. Zulfiqar was of the view that such confidence-building measures will be helpful in attracting reliable investments, stimulating economic growth, and creating employment opportunities. The Investment Ombudsman is poised to become a symbol of trustworthiness, providing investors with a safe and secure environment for their ventures. “Another key aim of the Investment Ombudsman is to streamline investment processes, reduce bureaucratic hurdles and improve efficiency. The Ombudsman will serve as a dedicated entity responsible for addressing complaints related to licencing, permits, visas, taxation, and any other barriers faced by investors,” he added.

By providing a one-stop shop for grievance resolution, the Ombudsman streamlines administrative processes, saving time, effort, and costs for investors. This streamlined approach will help attract foreign direct investment (FDI) and promote domestic entrepreneurship. “Transparency and accountability play a vital role in creating a favourable investment environment. The Ombudsman acts as a watchdog, ensuring a fair and transparent system where investors' rights are protected,” Zulfiqar said. He said by independently investigating complaints, conducting inquiries, and recommending corrective actions, the Ombudsman holds relevant government agencies accountable, and it will promote good governance practices while providing investors with a platform to voice their concerns, thus fostering trust and integrity in the investment ecosystem.

One of the standout features of the Ombudsman is its accessibility to investors. Through various means, such as online portals, helplines, or physical offices, the Ombudsman will provide easy access to investors to submit grievances and seek resolution. This user-friendly approach will cater to both local and foreign investors, ensuring their needs are met promptly. The Ombudsman will also play a proactive role in providing information, guidance, and support to potential and existing investors, thereby fostering an investor-friendly culture. While Pakistan has a nominally open FDI regime, it remains a challenging environment for investors.

Investment accounted for 13.6% of Pakistan’s nominal GDP in June, 2023, compared to 15.7% in the previous year. Fragile business environment due to uncertain policies and poor governance, and low public sector investment due to severe fiscal constraints are some of the key factors responsible for depressed investment activities. Another major problem is the concentration of FDI on the power sector, a domestic-oriented sector, which results in large foreign exchange costs. The establishment of an Ombudsman under Pakistan's Investment Policy 2023 will represent a significant leap forward in creating a conducive investment climate.

By addressing grievances, streamlining processes, and promoting transparency, the Ombudsman aims to facilitate investment and enhance investor trust in Pakistan's business environment. This initiative demonstrates the government's commitment to economic growth, competitiveness, and fostering a culture of investor-centred policies. With the Ombudsman as a guardian of investor rights, Pakistan is poised to attract a diverse range of investments, driving sustainable development and propelling the country towards a prosperous future.

Credit: INP-WealthPk