Former Minister of State and Chairman of the Board of Investment (BOI) Muhammad Azfar Ahsan, in a statement on Friday, said that the data released by the State Bank of Pakistan (SBP) on foreign investment, shows the abysmal condition of Pakistan’s economy.

Azfar referred to his many warnings regarding the distrust being built in foreign investors, and the dire repercussions that will come about consequently. His worst fears seem to have been realized.

According to the report, FDI is at $1.93 billion, down by 25%, the lowest in the last four years.

Azfar elaborated that investors are frustrated by the policy hurdles in the process of repatriating profits to parent companies.

Foreign companies are allowed to repatriate only 20% or $1.5 billion only, which itself puts a ceiling on the intended investment.

He pointed out that in his tenor as Chairman BoI, he had first-hand experience of how foreign investors had the will to invest in Pakistan, especially Middle Eastern countries that were strongly inclined towards 8 sectors of the economy, one being agriculture.

China, he said, is keen to invest in CPEC projects. What we need to do is to ensure facilitation to materialize these almost-ready projects and open avenues for billions of dollars in investment.

The present government, in confirmation of the commitment to bring in FDI, has passed the Bill Promotion and Protection Act 2022. According to this bill, the government will provide maximum relief to foreign investors in taxation and other matters. This is a great step towards opening investment opportunities.

Azfar explained how a satisfied investor becomes the best ambassador for the country’s prospects and enables a multiplier effect of attracting other investors.

Source: Pro Pakistani