ISLAMABAD: In a scathing indictment of the Board of Investment’s performance, the Auditor General of Pakistan (AGP) has raised serious concerns about the Board’s failure to meet its ambitious promises to attract Foreign Direct Investment (FDI).
The AGP’s pointed critique was raised during a meeting of the Public Accounts Committee’s (PAC) sub-committee, chaired by Muhammad Moin Aameer Pirzada, which examined the audit paras relating to the BoI for the years 2011-12, 2012-13, and 2014-15 through 2022-23.
The AGP’s scrutiny revealed the BoI’s consistent failure to meet its self-imposed targets, particularly those outlined in its 2019 action plan, which aimed to raise Pakistan’s investment-to-GDP ratio to 20 per cent within three years.
Despite this ambitious blueprint, the BoI has failed to reverse a worrying trend of stagnant FDI inflows.
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The audit paras, which covered a span of more than a decade, highlighted that the BoI’s performance remained lackluster, even as it blamed a host of global and domestic challenges – from energy shortages to law and order issues.
However, the AGP’s report suggested that these factors have increasingly become convenient excuses for the Board’s failure to deliver results.
The report paints a grim picture: net FDI inflows have remained dismally low, especially when compared to the more stable investment climate between 2015 and 2018.
Despite the BoI’s attempts to paint a rosier picture, the AGP bluntly describes the “huge decline” in FDI as a clear indication of deep-rooted flaws in the Board’s strategy and execution.
In its defence, the BoI claimed a gradual increase in FDI between 2013 and 2017. Yet, with a continuing downward trajectory in investment flows, these assertions are quickly losing credibility. The BoI’s mandate, established under the 2001 Ordinance and reinforced by the 2013 Investment Policy, is clear: it is tasked with facilitating both local and foreign investment and removing barriers that hinder economic growth.
However, the AGP’s findings suggest that the Board has failed to meet these objectives, raising the critical question: Has the BoI truly fulfilled its role as the apex body for investment promotion, or has it become a passive observer as Pakistan’s economy continues to struggle?
In response to the AGP’s findings, the PAC panel, clearly dismayed by the BoI’s appalling performance in attracting FDI, has demanded a comprehensive briefing on the Board’s activities, based on the audit reports covering the years 2011-12 to 2022-23.
Copyright Business Recorder, 2025
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