This apropos a Business Recorder op-ed “Country perception and FDI” carried by the newspaper recently. The writer, Farhat Ali, has highlighted the criticality of FDI for a developing country like Pakistan in an impressive manner.
Needless to say, not only does FDI contribute to the economic growth of a country, it also facilitates the inflow of new technology, managerial expertise, new ideas, skills, knowledge, increased employment opportunities, and improved infrastructure. The fact that the country needs to arrest the FDI slide as early as possible cannot be over-emphasized.
The writer has been found to be answering the question why FDI remains elusive in Pakistan in a consistent manner for quite some time. In his article titled above he has urged the authorities concerned to hold intensive consultations with Overseas International Chamber of Commerce and Industry (OICCI) with a view to increasing inward foreign investment flows into the country.
He has stated, for example, “OICCI, the oldest and largest investment chamber in the country, has a wealth of a diverse membership both in terms of sector and geography to draw on with current 200-plus members representing 35 different countries and 14 different sectors of trade and industry. OICCI is the pulse of foreign investment in Pakistan and the government is therefore required to take OICCI on board while framing its policies on FDI.” Fair enough.
In my view, our policymakers are required to study the FDI growth patterns in India in order to reach some informed decisions. In India, economic liberalization started in the wake of the 1991 economic crisis. Since then FDI has steadily increased in this South Asian country. The current situation in Pakistan is characterized by a woefully painful economic crisis. Robust inward FDI flows can constitute a major part to the solution.
Zafar Ahmad Ansari (Karachi)
Copyright Business Recorder, 2023
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