Pakistan has to eliminate bureaucratic red tape to ensure an efficient environment for attracting foreign direct investment (FDI). Talking to WealthPK, Majid Shabbir, General Secretary of the Islamabad Chamber of Commerce and Industry (ICCI), said that streamlining bureaucratic processes was not merely a procedural adjustment but a fundamental shift in how Pakistan positions itself as an investment destination. "The challenges faced by new investors in Pakistan have been attributed to a combination of factors, including political instability, a protracted government regulatory framework, high transaction costs and trade barriers."

He continued, "These hurdles collectively create a complex environment that can be particularly daunting for those seeking to establish or expand their businesses in the country." "The government needs to reduce the cost of doing business, provide tax incentives, reduce import/export procedures, and simplify FDI regulations," said Shabbir. Meanwhile, Zulfiqar Ali, Director General of Pakistan Regulatory Modernisation Initiative at the Board of Investment (BOI), told WealthPK that in a bid to bolster economic growth, the government has set in motion a plan to eliminate barriers obstructing FDI in the country. "The BOI aims to provide seamless support and guidance to potential investors by assisting with project identification, approvals, and coordinating with relevant government agencies."

He maintained that the establishment of the Special Investment Facilitation Council (SIFC) is a key part of this strategy. "This move comes at a crucial time for Pakistan, which has been grappling with a myriad of economic challenges, including dwindling reserves, a weakening currency, and stubbornly high inflation rates." "The recent signing of a staff-level pact with the International Monetary Fund (IMF) for a $3 billion stand-by agreement (SBA) provides some respite. However, the country remains in dire need of foreign investment and external financing to alleviate its economic woes," he opined.

"By creating an investor-friendly environment, facilitating investment projects, and focusing on strategic sectors and Special Economic Zones, the BOI also strives to propel Pakistan's economic growth and position it as a preferred destination for local and foreign investors." Ali maintained that one of the key technology tools employed is an online investment portal, which will serve as a one-stop shop for potential investors, providing them with comprehensive information on investment policies, legal framework, incentives, and available projects in Pakistan.

He said that by digitising the investment process, the BOI aims to remove bureaucratic hurdles, reduce red tape, and create a seamless experience for investors. "With a long-term vision and collaborative approach, Pakistan aims to enhance its economic stability, create employment opportunities, and foster sustainable development in the years to come," he stated.

Credit: Independent News Pakistan (INP)