In a recent address to the business community, Mian Zahid Hussain, Chairman of the National Business Group Pakistan and President of the Pakistan Businessmen and Intellectuals Forum, expressed grave concern over the dwindling investment landscape in the country, stating that it has plummeted to its lowest level in fifty years. Hussain emphasized the repercussions of this decline, highlighting its potential impact on securing a new IMF program, which he deemed unfortunate. He further criticized certain political factions, accusing them of exacerbating the situation and endangering their own support base. Attributing economic stability to Prime Minister Shahbaz Sharif's initiatives, Hussain lamented the persisting political instability, which he argued has deterred investors from engaging with Pakistan. Despite efforts by the Prime Minister to attract investment, challenges such as high utility prices, elevated policy rates, and political turbulence continue to hinder progress.

Hussain disclosed that despite assurances from Saudi Arabia and the United Arab Emirates pledging fifteen billion dollars in investment, the investment ratio in Pakistan has fallen below target levels. He underscored a significant decline in both public and private sector investment as a cause for concern. Commenting on the efficacy of the Special Investment Facilitation Council (SIFC), established a year prior, Hussain expressed disappointment over its perceived lack of impact in attracting expected investments or advancing privatization efforts. He advocated for urgent privatization of utilities and defunct government entities, estimating potential annual savings of eight billion dollars. Highlighting the imperative of economic reforms, Hussain stressed the need for policymakers to address systemic barriers to investment and foster a conducive business environment.

He called for a comprehensive investigation into the root causes of declining investment and urged for corrective measures to be implemented promptly. Hussain also underscored the low industrial expansion and technology utilization in Pakistan, alongside the burgeoning black economy and suboptimal security conditions. He emphasized the necessity for balanced policies and continuity in their implementation to instill confidence among local and foreign investors. Concluding his remarks, Hussain asserted that without fundamental economic reforms and a more business-friendly bureaucracy, the investment climate in Pakistan would not witness improvement. He cautioned against further delay in acknowledging this reality and called for concerted efforts towards revitalizing the investment landscape.

Credit: Independent News Pakistan