Investment, anyone?

Prime Minister Shehbaz Sharif recently concluded an investment-seeking trip to Saudi Arabia and Qatar. According to Federal Minister for Information and Broadcasting Attaullah Tarar, the trip was a success, with Saudi Arabia signing additional Memorandums of Understanding (MOUs) amounting to $600 million, bringing their total pledged investment to $2.8 billion. The minister also announced a pledge from Qatar to invest $3 billion in Pakistan, though he provided no details on how or when this investment might materialise. This is not the first time we have heard promises of substantial foreign investment. Past governments have also expressed high expectations of foreign investment. Unfortunately, these promises rarely translate into reality. I believe that no country can achieve meaningful development without foreign investment, which not only provides capital but also brings essential technology that Pakistan desperately needs. However, foreign investment requires an enabling environment, which Pakistan currently lacks. A conducive investment climate includes economic and political stability, fair competition, and security of life and property – elements that are prevalent in regional models like the UAE and Qatar.

Our failure to attract foreign investment is evident from the recent, disappointing attempt to privatise Pakistan International Airlines (PIA). Despite pre-approving six interested groups, only one showed up to bid for the airline on October 31, 2024, offering a low bid of Rs10 billion against the government’s reserve price of Rs85 billion. This embarrassing episode underscores the urgent need to create an investment-friendly environment in Pakistan. If we are serious about attracting foreign investment, we must act swiftly to implement reforms that make Pakistan a viable and attractive destination for investors.

Ejaz Ahmad Magoon

Dubai

UAE