'Energy crisis, inflation discouraging investors'

Non-availability of electricity and gas, absence of long-term policies and fluctuation in prices has discouraged the foreign investors and they are exploring new avenues for making investment, said President of Multan Chamber of Commerce & Industry (MCCI), Mian Anis A Sheikh while talking to journalists on Thursday.
Expressing deep concern over 65 percent decline in Foreign Direct Investment (FDI) and Portfolio Investment during July-March 2011-12 as revealed by an official report and urged the government to tackle it on war-footing basis through a comprehensive policy approach by involving all chambers of commerce in the country.
MCCI President said Pakistan's investment rate was only 13.4 percent at the end of last fiscal year, which was the lowest since FY74. The low saving rate, coupled with wary foreign investors led to record low investment rate in the country. He said that worst-ever energy shortfall, unclear economic policies, a serious law and order situation and institutional fragility were the major factors keeping the foreign investors away.
He suggested if the country was losing charm for foreign investors then the government would have to take extraordinary measures to avoid its effects on local investors and country's economic growth. He said the slow government response to deal with aggravating energy crisis was also spoiling not only the local investment scenario but also sending a very negative signal to potential foreign investors.
Sheikh said a special committee comprising private sector members should be formed to identify the solutions to attract foreign investment that was a prerequisite for economic growth. He said that the proposed committee should also be asked to look into the existing policy framework and if there was a need to redesign new policies and the committee should immediately initiate work on them.
Sheikh said that all the developed countries accord special importance to economic issues and the challenges. But in Pakistan the situation is the other way round and the economy is on the bottom of government to-do list. He said that the key issues including power shortage, poor infrastructure, law and order situation and other vital factors, should be addressed on priority basis to put the country on track of economic growth and development.
"At the same time, the government should ensure that all institutions remain immune to any sort of undue interference as this will help improve quality of governance without which foreign investment can not be attracted. "A number of sectors in Pakistan including infrastructure development, coal, energy, agriculture, livestock, textiles and pharmaceutical offer and lucrative investment opportunities to foreign investors but unfortunately due to absence of a proper marketing strategy these opportunities are unattended even today.