By Fozia Azam

The Pakistan Investment Policy 2023 (PIP) aims at creating a favourable climate to increase net foreign direct investment inflows and enhance the investment to gross domestic product ratio from the current 15% to 20%. According to the draft of the policy available with WealthPK, by implementing this progressive investment policy, Pakistan envisions attracting both domestic and foreign investors, ultimately propelling the country towards rapid economic development and prosperity. The primary objective of the policy is to implement measures that will reap the benefits of a progressive increase in net FDI inflows, which will contribute to economic growth, job creation, and poverty reduction, as Pakistan seeks to solidify its position as an attractive investment destination in South Asia.

The new investment policy focuses on creating an attractive investment climate that fosters economic growth and builds investor confidence. It outlines measures to streamline business processes, enhance ease of doing business, and promote inclusiveness. “The policy is designed to address key concerns of potential investors, including policy stability, transparency, and access to finance, while ensuring the protection of investor rights. Furthermore, the policy aims to diversify the investment landscape and establish Pakistan as a regional hub for trade and communication,” an official of the Board of Investment (BoI) told WealthPK.

He said the policy prioritised streamlining investment processes and creating an investor-friendly ecosystem. “Steps have been taken to simplify bureaucratic procedures, minimise red tape, and establish a one-window operation to ensure swift processing of investment applications.” “The policy will offer a range of appealing incentives to potential investors, including tax exemptions, reduced or eliminated customs duties, and lenient repatriation policies,” he added. “These incentives have been designed to ensure a conducive environment for investment in various sectors of the economy.” The official said that PIP 2023 also focused on providing ample investment opportunities in key sectors, including agriculture, infrastructure, energy, textiles, information technology and pharma industries, to name a few.

“Recognising the important role of entrepreneurs in driving economic growth, the investment policy seeks to foster an ecosystem that encourages innovation and supports startups,” he said, adding that the government planned to establish incubation centres, provide financial and technical support to entrepreneurs and promote networking opportunities for them. “Through the policy, the government is also keen to promote public-private partnerships in order to leverage the potential of these sectors and accelerate economic growth. By inviting investments in emerging industries such as renewable energy and technology parks, Pakistan aims to achieve sustainable development in the long-run,” the BoI official explained.

He said recognising the significance of international collaboration, the policy aimed to foster partnerships with global organisations and institutions to facilitate capacity building, knowledge transfer, and technical assistance to spur growth of key industries. He said the government was actively engaging with countries, international investors, and bilateral trade partners to attract investments. “While attracting FDI, the policy is also committed to enhancing the ease of doing business for both local and foreign entrepreneurs.”

He said the launch of Pakistan Investment Policy 2023 would set a strong base for the country’s economic development and position it as an attractive investment destination in the South Asian region. “As the draft Pakistan Investment Policy 2023 establishes a framework for attracting FDI by relaxing regulations, promoting competitive incentives, and safeguarding investor interests, it aims to increase foreign capital flows into priority sectors, strengthen existing investment facilitation mechanisms, and establish a one-stop-shop infrastructure for foreign investors. By doing so, the government aims to boost Pakistan's international competitiveness and foster ties with global partners,” the BoI official further explained.

Pakistan Investment Policy 2023 represents a significant step forward in attracting investments that contribute to sustainable economic growth. The policy aims to unlock Pakistan's vast economic potential. By creating a business-friendly environment, offering attractive incentives, and targeting key sectors for investment, the government is poised to increase net FDI inflows significantly. These efforts are expected to accelerate economic growth and create employment opportunities.

Credit: INP-WealthPk