KARACHI: Reference BR editorial on 7th April 2024 ‘FED UP JAPANESE INVESTORS’ the following facts are appraised:
On 5th April 2024 the news appeared in your paper that the Government of Japan has decided to provide additional grants of $9.8M for two projects. This news shows confidence of the Government of Japan in the policies of Government of Pakistan and political stability in Pakistan.
According to official data available on the Japanese Embassy website; Japan has FDI in Pakistan is $182M (July 2022/June 2023). This reflects Japanese investors’ confidence in the security situation in Pakistan. According to the Board of Investment (BOI), in financial year 2022-23 the FDI from Japan stands at $183M while there is a minor dip of $1.2M in FDI from 2023-2024(Jul- Jan) which is a negligible amount in terms of already made investment in Pakistan. This decrease is not due to any policy issues but may be due to some restructuring of the investment portfolio by Japanese investors in Pakistan.
As far as the higher yielding markets are concerned Pakistan’s Government has approved the Pakistan Investment Policy (PIP) 2023, aimed at boosting foreign and domestic investments. The policy abolishes the minimum equity requirement for foreign investment, allowing investors to invest in all sectors except certain ones. It also allows foreign investors to repatriate profits abroad, no longer face restrictions on land leasing, and allows 60 per cent stakes in agricultural projects. The policy also simplifies business regulations, establishes an investment grievances mechanism, and offers incentives based on performance and location.
Copyright Business Recorder, 2024
Comments
Comments are closed for this article.