Blome advocates private sector investment for economic growth

LAHORE: The private sector plays a vital role in creating jobs, and stimulating economic growth. This was the highlight of the conversation around economic growth and US investment in Pakistan during the recent visit of US Ambassador to Pakistan, Donald Blome.

Talking about the challenge of repatriation of profits and dividends that the multinational companies have been facing over the last year amid the balance of payment crisis in Pakistan, the US Ambassador emphasised upon not only balancing the financial needs but also finding ways to allow successful multinational companies to operate in the country, and rightly so as one of the biggest challenges for Pakistanis to find ways to attract investment - especially private sector investment in the country.

This was discussed during a high-level meeting held with the leadership of PepsiCo at the Company’s snacks manufacturing plant at Sundar Industrial Estate in Lahore.

Companies from the US have been operating successfully in Pakistan and brining the much-needed investment. The issue of repatriation profits and dividends needs to be addressed to move the inertia in FDI.

Donald Blome mentioned that it has to be addressed directly and these successful companies should be able to do business here in Pakistan, which would demonstrate that there is room to excel for others and MNCs to thrive. The ambassador emphasised that this is very crucial for the country as the future growth relies on private sector development.

He reaffirmed the United States’ commitment to trade, investment, and development with and through the private sector as well as on government-to-government level that include the partnership on ‘Green Alliance’ initiative, energy transformation, water management, agriculture etc. The companies from the US are also enabling the investment climate on Pakistan by creating jobs and giving back to local communities through corporate social responsibility initiatives that promote education, health, women’s empowerment, disaster relief, etc.

The ambassador also highlighted political stability and smooth democratic transition as one of the ways to create enabling environment in which FDI will be attractive and will thrive in the country. Beyond that, he mentioned policies in place to protect the investors from arbitrary rules and regulations, simplifying business processes, creating a level playing field for the domestic and foreign companies, and allowing them to make money - which is the objective of the private sector- as major contributors to a conducive environment for investment.

Copyright Business Recorder, 2023