January 24, 2024 (MLN): Pakistan needs to increase the level of investment in productive sectors to revive economic growth by generating foreign exchange and productivity, Coordinator to Minister of State and Federal Tax Ombudsman, Meher Kashif Younis, expressed while addressing a seminar on “Impact and importance of FDI (Foreign Direct Investment) on Economy” on Wednesday.
He added that there is a need to effectively promote the Special Investment Facilitation Council's motto on a global scale, as APP reported.
Meher Kashif said, "Our investment to nominal GDP ratio was lowest in the region at 13.6% in 2023, compared with 15.7% 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 realized 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.
Another speaker a recipient of the best CEO award, Maheen, said the countries actively seeking FDI often implement policies that facilitate a conducive business environment, offering incentives and reducing bureaucratic hurdles.
By attracting foreign investments, Pakistan can attain sustainable economic growth, strengthen their industrial base, and establish a more resilient and globally connected economy.
She was of the view that FDI serves as a cornerstone for economic development, fostering prosperity through enhanced productivity, job creation, and expanded international trade.
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Posted on:2024-01-24T15:25:42+05:00
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