Barrier to foreign investment

THE words “to attract investments from friendly countries in identified sectors through an empowered organisation that serves as a ‘single-window’ platform for facilitation, and to improve the ease of doing business for potential investors through a ‘Whole of Government Approach’ — achieving optimal horizontal-vertical synergy and facilitation by the Pakistan Army” of the mission statement of the Special Investment Facilitation Council demonstrate a powerful vision. However, if we navigate the SIFC’s website, one significant aspect is absent — substantial focus on contract enforcement. The undeniable truth is that foreign investment is a vital driver of economic development in any nation, igniting growth and job creation, as well as raising living standards. Yet, the lack of effective contract-enforcement mechanisms in the country stands as a large roadblock that deters foreign investors from channelling their capital into the country. When contracts are enforced fairly and reliably, businesses and consumers can enter into agreements with confidence, knowing they will be held accountable for their promises. This creates an environment conducive to economic growth and prosperity for all stakeholders involved.