ISLAMABAD: Pakistan is to announce Pakistan Investment Policy 2023 (PIP 2023), a comprehensive strategy aimed at attracting high-quality export-oriented investments and supporting the country’s economic development.
Like the previous policy, foreign investors in any sector are also allowed at any time to repatriate profits, dividends, or any other funds in the currency of the country from which the investment originated, a final draft of the policy is exclusively available with The News said. An official of the board of Investment (BoI) told this scribe that hopefully Prime Minister Shehbaz Sharif will formally launch this policy in a few days. With the ambitious goal of becoming one of the top ten economies by 2047, Pakistan aims to achieve balanced and sustainable growth by leveraging foreign direct investment (FDI). PIP 2023 considers global economic challenges, the post-Covid-19 environment, and the changing geopolitical landscape to create a favorable investment climate. Pakistan boasts several advantages for investors, including its strategic location, abundant natural resources, and a skilled workforce. The country maintains a liberal investment regime and aims to attract high-quality FDI to promote economic integration with global value chains. By focusing on export-oriented and import-substituting sectors, Pakistan aims to become an upper-middle-income country and increase its economic complexity.
Recognizing the need to enhance FDI inflows amid the recovery from the global pandemic and regional challenges, PIP 2023 aims to boost investor confidence in Pakistan. Although, global FDI flows have recovered to pre-pandemic levels, the majority of these flows are directed towards developed countries. Developing economies, including Pakistan, have experienced a more modest recovery. However, infrastructure and information and communications technology remain sectors of interest for investors, presenting opportunities for Pakistan. Building upon the Investment Policies of 1997 and 2013, PIP 2023 aims to further liberalize investment activities and improve the investment climate in Pakistan. The 2013 Policy focused on reducing the cost and processes of doing business, ease of doing business through industrial clusters and special economic zones, and linkages between trade, industry, and monetary policies. It also emphasized open admission of foreign investments, investment protections and repatriation of funds. The PIP 2023 aims to enhance the investment climate by improving ease of doing business, investment promotion, investor retention and facilitation, investor protection, and sector focus. The policy introduces good regulatory practices, reduces unnecessary regulatory burden, and adopts economic diplomacy practices to attract sustainable FDI that brings value addition, job creation, and export earnings. The policy also focuses on promoting inclusivity and responsible business practices. The objectives of PIP 2023 include addressing economic imbalances, achieving sustainable and inclusive economic growth, enhancing net FDI inflows, and increasing the investment-to-GDP ratio. The policy aims to transform the business environment by providing efficient and transparent services to investors. By diversifying products and services for export, Pakistan aims to improve its economic complexity and increase export earnings through higher value-added activities.
The overarching strategy of PIP 2023 is to establish Pakistan as a preferred investment destination in the region. This strategy focuses on increasing economic complexity, creating high-value jobs, developing domestic linkages, fostering clusters, and promoting inclusivity. Through performance-based indicators, Pakistan will incentivize investments that contribute to these aspirations.
Pakistan welcomes investments in all sectors, except those specifically restricted for national security and public safety reasons. The country ensures fair treatment and provides a transparent process for investment entry. PIP 2023 emphasizes investment facilitation and aftercare to support investors throughout the investment lifecycle. The government provides a one-window facility, online registration procedures, and a business matchmaking module to streamline processes and facilitate investors.
To attract investments, Pakistan will focus on export-oriented, import-substituting, high-value-added, technology-intensive, and knowledge-based sectors. It will finalise a list of priority sectors based on comparative advantage and develop complete value chains with local expertise. The government plans to increase investment promotion in GCC countries, ASEAN member states, Central Asia, and Turkey, utilizing economic diplomacy, technology tools, and international agreements.
The Pakistan Investment Policy 2023 aims to attract high-quality investments and promote sustainable economic growth. By adopting a multi-pronged approach, Pakistan seeks to enhance its economic complexity, create high-value jobs, and increase its share in global value chains. With a comprehensive set of measures and incentives, Pakistan strives to become a preferred investment destination in the region and achieve its long-term economic development goals.
