The Board of Investment (BOl) has identified seven priority sectors for attracting both domestic and foreign direct investment. The priority sectors include food processing, logistics, textiles, automobiles, information technology, housing and construction, and tourism and hospitality. Talking to WealthPK, Ambreen Iftikhar, the BOI Additional Secretary, said the investment body was committed to providing the best enablement, safeguards and assistance to foreign investors. She said the board also encouraged local investors to contribute to the national economy. She claimed that the diverse aspects of the investment framework were meant to bolster investor confidence.

“To make investment in these priority sectors more appealing, the BOI offers a range of incentives and facilities, including tax breaks, reduced regulations, easier permit and licensing processes, access to infrastructure and support services. The specific incentives varied depending on the sector and the scale of investment,” she explained. Ambreen Iftikhar said the BOI was working closely with the government to implement investor-friendly policies and reforms that enhanced the ease of doing business in Pakistan. “Streamlining regulatory procedures, improving infrastructure, ensuring a level-playing field, and offering tax incentives are some of the measures to create an investor-friendly environment in the country,” she said.

She also provided details on the specific incentives available in the logistics sector. Customs duty was exempted on import of aircraft parts, including engines, simulators, spare parts, maintenance kits, equipment required for setting up maintenance, repair & overhaul workshop, machinery, equipment, furniture and fixture imported for establishment of a new airport, she said. “Import of containers for transportation of cargo, ship spares, and equipment are also exempt from sales tax,” she added.

She opined that recognising the vital role of technology in shaping the country’s future, the BOI had redoubled its efforts to attract investments in technology-driven sectors. She said by focusing on industries such as information technology, software development, telecommunications equipment, and electronic manufacturing, BOI aimed to forge partnerships with global technology giants. “BOI efforts are aimed at building trust and fostering a positive image of Pakistan as an attractive investment destination,” she stated. The foreign direct investment (FDI) posted an increase of 16.1%, or $32.5 million, during the July-Aug period of FY24.

The State Bank of Pakistan reported that Pakistan fetched FDI amounting to $234 million during the first two months of this fiscal year against $201 million in the corresponding period of last fiscal year (FY23). During the period under review, FDI inflows were $345.3 against $112 million outflows. Total foreign investment in Pakistan, comprising FDI, portfolio investment and foreign public investment, registered a growth of 48%, or $84 million, to $260.4 million in July-Aug of FY24 compared to $176.4 billion over the same period of FY23, reports WealthPK.

Credit: Independent News Pakistan (INP)