Abdul Wajid Khan ISLAMABAD, Feb. 11 (INP-Wealthpk): The Pakistan government is taking steps to enhance foreign direct investment (FDI) to promote domestic manufacturing industry. According to an official document issued by the minister in-charge of the Prime Minister’s Office, Board of Investment (BoI), the government in consultation with all the relevant ministries, institutions and provincial governments is working on a comprehensive strategy to further improve ease of doing business in Pakistan. The document mentioned that according to World Bank’s Doing Business 2020 report, Pakistan improved its global ranking by 28 notches from 136 to 108 and the country was named the top reformer of South Asia, ranking sixth on the globe. It added that Pakistan improved in six areas measured by the report, including starting a business, dealing with construction permits, getting electricity, registering property, paying taxes, and trading across borders. Prime Minister Imran Khan has already launched Pakistan Regulatory Modernisation Initiative (PRMI) to transform the regulatory landscape across the three tiers of the government—federal, provincial and local. The PRMI is a comprehensive reform initiative that brings together all provinces, territories and their respective departments to map, simplify, eliminate and automate regulatory landscape to reduce burden on business and elevate Pakistan among the top destinations for investment. The document stated that till date, the government has notified 22 special economic zones (SEZs) to attract FDI in the country. It added that the government has promulgated SEZs Act with the main objective to attract both local and foreign investment in the country and to enhance industrialisation process. Income tax and custom duty exemptions are allowed to the developers and enterprises located in these SEZs. Apart from fiscal incentives, it added, other non-fiscal incentives like gas, electricity and other utilities are being provided at the zero-point of the zones. To attract quality investment and to bring investment to gross domestic product (GDP) ratio at par with our competitors, the BoI has launched a three-year investment promotion strategy, 2020 to 2023, after extensive consultations with stakeholders. The strategy provides a comprehensive investment cycle. It consists of policy advocacy, market research, investment facilitation, promotion, protection including investors tracking, and sector scanning and after-care services to investors and projects. Keeping in view the global best practices, a new comprehensive investment act is being devised and proposed to replace the existing legislation on investment protection, the document stated. The BoI has integrated investor's grievance cell for local and foreign investors with Citizen’s Portal introduced by the Prime Minister's Office to further enhance the investors’ confidence on government's resolve to solve their problems. The BoI has also developed online portal titled Pakistan Online Visa System (POVS) for processing and recommending work visa cases of foreign expatriates employed by the companies. The BoI also made the registration of branch and liaison offices easier and in this regard developed online portal branch liaison management information system for online receipt and processing of branch or liaison office by the foreign companies, the statement concluded. CPEC to promote FDI in manufacturing sector During the current fourth industrial revolution, the role of FDI for developing countries like Pakistan has become extremely important in strengthening their domestic manufacturing industry and enhancing exports. Competition among countries is now increasing day by day to enhance their market share in international business and trade. Countries are constantly innovating and upgrading their domestic industries to become part of global supply chains. So, global supply chains are gaining more importance in linking developing countries to international markets. The FDI increases the competition and the competitiveness of domestic industries by bringing new technologies, skills, employment opportunities and economic development. It boosts exports and helps countries enter and compete in the international markets. A research study conducted by Pakistan Institute of Development Economics (PIDE) on FDI in Pakistan suggests that policymakers should increase focus on attracting FDI in manufacturing and services sectors in order to attain economic growth. It added that in the manufacturing sector, the inflow of FDI is relatively small; especially the textile sector has received meagre FDI inflows. Pakistan has received little export-oriented FDI and hence, there is a limited role of FDI in export promotion. The main focus in the second phase of China-Pakistan Economic Corridor (CPEC) is to boost manufacturing and industrial sector. In this phase, it is believed that CPEC will provide massive opportunities to Pakistan to attract FDI in manufacturing sector. Under CPEC, industrial cooperation between China and Pakistan is growing and currently work is underway in four SEZs in the country including Rashakai, Dhabeji, Allama Iqbal Industrial City and Bostan. Five more SEZs, including ICT Model Industrial Zone, Industrial Park on Pakistan Steel Mill Land, Mirpur Industrial Zone, Mohmand Marble City and Moqpondass SEZ, will be developed in future to boost industrialisation in the country. Although the government is already taking tangible steps to further improve ease of doing business and to provide conducive environment to attract more international investment, there is still room for more improvement. The government needs to fix loopholes in this regard to facilitate more investment under CPEC in upgradation and innovation of domestic industries.