Aiding investment

THE new Pakistan Investment Policy 2023 appears to have been driven by the government’s short- to medium-term objective of facilitating ‘promised’ investment from the Gulf countries, and the longer-term goal of improving the overall business environment at home to enhance investment-to-GDP ratio to 20pc. The World Bank estimates that investment will plunge to 13.3pc as a ratio of GDP during the present financial year from 15pc in FY20. Designed in collaboration with multilateral financial institutions, the policy is expected to attract $20-25bn in investment over the next few years. The government has indicated that the GCC nations are very interested in investing in different segments of Pakistan’s economy to support development. The prime minister has already formed a Special Investment Facilitation Council to overcome any obstacles in the way of the project. The policy will focus on reducing the cost and facilitating the ease of doing business, streamlining business processes and promoting the convergence of trade, industrial and monetary policies. It offers numerous incentives to foreign investors, including elimination of the minimum equity requirement and permission to invest in all sectors, barring a few.