Pakistan needs to increase the level of investment in productive sectors to revive economic growth by generating foreign exchange and productivity, besides properly projecting the Special Investment Facilitation Council’s motto worldwide.
Coordinator to Minister of State and Federal Tax Ombudsman, Meher Kashif Younis, expressed these views, while addressing a seminar on “Impact and importance of FDI (Foreign Direct Investment) on Economy”, here on Wednesday.
Meher Kashif said, “Our investment to nominal GDP ratio was lowest in the region at 13.6 per cent in 2023, compared with 15.7 per cent in the year 2022.” He said the FDI significantly boosts exports by integrating domestic industries into global value chains, besides restoring the confidence of local and foreign investors.
He said if Pakistan wants to grow on sustainable grounds, it will have to replace the high debt with a much higher inflow of investment from local and regional investors. Continuing with the transactional approach, Pakistan has reached out to the oil-rich countries of the Arabian Gulf for investment in various sectors including energy, mining, communication, and agriculture.
He said the advantages of regional connectivity can only be realised if policies are formed to attract private capital to create jobs, exports and value-addition.
He said FDI plays a pivotal role in fortifying economies and propelling export-led growth, asserting that foreign entities not only bring capital but also advanced technologies, management expertise, and access to global markets. This infusion of resources contributes to the modernization of industries, fostering increased productivity and competitiveness, he added.
The Coordinator said that foreign investors may leverage their international networks to market locally-produced goods on a broader scale and this exposure opens new avenues for businesses, enabling them to diversify their customer base and increase export volumes. —APP
