Ayesha Saba

The Board of Investment (BOI) has reaffirmed its commitment to cultivating a transparent, business-friendly, and investment-ready environment in Pakistan through sustained regulatory reforms.

The BOI recently reviewed the progress of the Pakistan Regulatory Modernisation Initiative (PRMI). This collaborative effort includes strong partnerships with the development organisations, which have been instrumental in providing technical expertise and financial support. Scott Jacobs, a global expert on regulatory modernisation, highlights the importance of eliminating unnecessary regulations to improve Pakistan's competitiveness in the global business arena.

“By eliminating regulatory inefficiencies and creating a streamlined process, Pakistan can significantly improve its business environment, attract foreign investment, and bolster its position on the Ease of Doing Business Index,” Jacobs stated.  Talking to WealthPK, an official from BOI, on condition of anonymity, said the involvement of development partners is key to bringing technical expertise and best practices to Pakistan's regulatory framework.

“These partnerships can help modernise processes, reduce bureaucratic hurdles, and ultimately make the business environment more attractive for both domestic and foreign investors.” According to the World Bank’s Ease of Doing Business Index, Pakistan ranks poorly in terms of starting a business and securing construction permits.

Streamlining permits through online platforms and reducing redundant approvals can save time and resources for businesses, particularly SMEs that lack the capital to navigate complex regulatory environments. The BOI official pointed out that efficient permitting processes in countries like Malaysia and the UAE have significantly improved their business climates, leading to higher foreign direct investment inflows.

“If we want to attract global investors and empower our entrepreneurs, we need to simplify how businesses interact with regulatory bodies,” he added. He stressed the need for reevaluating the investment strategies with specific emphasis on attracting FDI in export-oriented segments that will help in improving value-added exports and will pave the way for export-led growth. “Pakistan is lagging behind in technology and value-added products.”

“A streamlined business registration process is a key driver for economic growth. By reducing administrative bottlenecks, the BOI is sending a positive signal to potential investors, signalling Pakistan’s commitment to fostering a business-friendly environment,” the official added. Economic experts view this ongoing reform agenda as a key pillar for improving investor sentiment and unlocking the country’s untapped economic potential.

Credit: INP-WealthPk