Muhammad Saleem

An investor-friendly environment is crucial for strengthening the economy and generating jobs in Pakistan. Salamat Ali, an industrialist, told WealthPK that fluctuating prices of electricity and gas were keeping businessmen on their toes. He said due to this uncertainty they were not in a position to devise a future course of action. Apart from the high cost of energy, he mentioned that another biggest challenge was the inconsistent regulatory framework.

He said policymakers often changed the policies, taxes, and tariffs without consulting real stakeholders. “In such a scenario, neither national nor international investors will like to invest their money in Pakistan.” He said that frequent changes in taxes and duties had disrupted the entire supply chain, driving up costs. He said due to unbridled inflation, millers were in dire need of finance to keep their businesses afloat.

However, he pointed out that securing loans was a daunting task for many small and medium-sized enterprises (SMEs). He said the interest rates were still too high, and the requirements for obtaining loans were stringent. “Because of these obstacles, the SMEs do not invest to grow and innovate,” he added. Ameen Ahmed, an exporter, told WealthPK that the existing investment climate in the country was far from ideal, especially for exporters.

He said in the past, investors willingly invested in the country’s textile sector. “However, they are now hesitant to risk their money.” Ahmed said that soaring energy costs were eating into profits and shattering the confidence of investors. “Due to these longstanding issues, exporters are finding it difficult to compete on the global stage, as our prices are too high compared to those from other countries.” He said bureaucratic hurdles were also hampering business activities, making it difficult for exporters to dispatch their shipments timely.

He urged the people at the helm of affairs to review the cumbersome customs procedures, which are lengthy and cause delays. “Delayed shipments are damaging the relations of exporters with their foreign buyers,” he added. “If we want to make headway in the textile sector, the government must support exporters in exploring new markets. Besides, ample funds should be allocated to promote Pakistani products abroad,” he emphasised.

Dr Ashraf Ali, a teacher at a state-run university, said the government’s policies played a crucial role in creating an investor-friendly environment in the country. “We can accommodate foreign investors by introducing friendly policies.” He said without a stable regulatory framework businesses could not thrive. “Clear policies for imports and exports are imperative to win the trust of investors,” he added. Ali also called for improving infrastructure like roads, ports, and energy supply.

He said increased business productivity was not possible without ensuring reliable infrastructure. He urged the government to announce incentives to boost foreign direct investment. “We must offer convenience to investors who bring in new technologies and create jobs. We can incentivise them through tax holidays or reduced tariffs,” he added.

Credit: INP-WealthPk