All economic indicators improved considerably, says BoI chairman

All economic indicators have improved considerably and with the completion of new power houses and import of LNG, the energy crisis will be over that will automatically attract new Foreign Direct Investment (FDI) in Pakistan, said State Minister/Chairman Board of Investment (BoI) Dr Miftah Ismail.
Addressing a function at Faisalabad Chamber of Commerce and Industry (FCCI) here on Monday, he said that just three or four years back the stock market was dwindling at 19,000 points that has now crossed the barriers of 55,000 points. Similarly, the GDP has jumped to 5 percent from 2.8 percent in 2013. He said that agriculture production has also recorded a sizeable increase that will help in containing inflation around 3.5 percent. However, the textile package may further increase its effect up to 4.1 percent which is reasonable within the given circumstances.
He said that despite of all positive indicators, the decline in exports is very alarming and government was taking necessary steps to stabilise exports. He said that the energy crisis was a major impediment in attracting domestic as well as Foreign Direct Investment (FDI). He said that elimination of energy crisis will help in attracting FDI in a big way as the other factors including connectivity etc have also been resolved. He said that China-Pakistan Economic Corridor is a major project and in its first phase 51 billion dollars are expected to be invested out of which 34 billion dollars have been earmarked for the power plants. He clarified that this is not a loan and these plants are being installed on the same terms and conditions as were allowed by late Benazir Bhutto in 1994 and by Musharraf in 2002.
About five power plants being installed in Punjab, he said that three are being funded by the provincial government while two are installed by private sector. He said that government was also considering a proposal to privatize these plants immediately after their completion.
Continuing, Chairman Board of Investment said that the portfolio of National Highway Authority was only Rs 30 billion when this government took over. Now it has increased to Rs 140 billion and a comprehensive road network is being laid across the country including Multan-Lahore motorway. He said the Chinese government has provided a soft loan for this purpose which could be easily repayable from the toll collected from the Chinese carriers. He said that nine industrial zones have been proposed under CPEC and the same facilities would be provided in these zones to the Pakistanis as well as Chinese investors to set up their industrial units.
About multiplicity of taxes, he said that approximately 16 to 17 agencies are collecting different taxes. "We are making efforts to withdraw at least one or two of these in addition to clubbing the remaining taxes", he added. Regarding ease of doing-business, he said that improvement in it is visible but we have to do much more to attract and facilitate the local as well as foreign investors. He also assured the local business community that their legitimate interests would be protected at all costs and in this connection he will prefer joint ventures with Chinese partners. He asked the FCCI members to visit China and explore the Chinese investors who could launch joint ventures in Pakistan. He said that BoI will fully support them in materialising these joint ventures. He further told that M-3 industrial city has already been declared Export Processing Zone but it is not possible to declare entire city as EPZ.
Responding to yet another question, he told that industrial sector in Punjab was getting 45 percent natural gas at local price while the remaining LNG is being supplied to them at international rates. He also contradicted news that 6 lac Chinese will come to Balochistan every year. He said that government has issued only 2500 visas to Chinese up till now.
Earlier, Engineer Muhammad Saeed Sheikh President FCCI in his address of welcome lauded the efforts of the government who has been providing capital for the establishment of new industrial units at lowest interest rate, Similarly, the energy crisis is over and industries are getting electricity and gas round the clock. He also welcomed the government's decision to zero rate the five important export sectors of the country and said that Rs 180 billion Export package will also help in the revival of the textile sector.
Regarding, FDI he told that 70 percent of it has came from China &/ the Netherlands which is being invested in power and food sectors. Vice President Engineer Ahmad Hassan said that the local industrialists have some apprehensions about the CPEC and in this connection a comprehensive questionnaire has already been sent to the concerned government quarters. He requested Dr Miftah to explain these points so that the local industrialists could also contribute their role for the success of CPEC project. He said that local investment will automatically attract the FDI after the launch of CPEC project.
During question answer session, Azhar Ali Chaudhary secretary, BoI, Dr Khurram Tariq of PHMA, Mian Javed Iqbal, Chaudhary Muhammad Nawaz, Chaudhary Muhammad Boota and Engineer Ehtasham Javed of APTPMA raised interesting questions. VP Ahmad Hassan being Chairman of the CPEC cell of FCCI presented a piece of book on CPEC to the State Minister. Former President FCCI Mian Javed Iqbal and VP Engineer Ahmad Hassan also presented FCCI shields to Dr Miftah and Azhar Ali Chaudhary respectively. Later, Mian Javed Iqbal also offered vote of thanks.