Foreign investors want consistent economic policies

KARACHI: Foreign investors want consistency in economic policies and political stability to make their investment decisions in the country, a top industry official said on Friday.   

Nadeem Naqvi, managing director at Pakistan Stock Exchange (PSX) said foreign investors acknowledged the recent economic growth, but they still hold apprehensions on political environment.

“The foreign investors would like to see political and social stability in Pakistan,” Naqvi said, speaking at a seminar organised by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

Naqvi recently organised road shows in China, UK and the U.S. for the sale of 40 percent strategic shares in the PSX. 

He told the participants that foreign investors also want consistent and long-term economic policies for the smooth implementation of their business strategies. “Monetary and exchange rate policies are also areas of concerns as the investors want them to be realistic,” said PSX MD.

He said investors want Pakistan to have a better fiscal policy since interest rates globally have eased significantly. He, however, appreciated the government’s role towards the infrastructure development.

Naqvi further said foreign investors were also apprehensive on working of various government departments that create bottlenecks in business decision making. “Skilled manpower is mandatory to attract big companies in Pakistan, but investors are worried about their unseen business cost as the country lacks such trained people,” he added. 

Earlier, Jordan James Din, deputy head of mission/head of commercial section at the Consulate General of Switzerland presented trade data between the two countries.  Din said around 23 companies with 100 percent Swiss investment are operating in Pakistan. He said the Swiss companies are interested in agriculture, construction and services sectors. 

The envoy, however, expressed concern over the violations of intellectual property rights in the country. “The mission is discussing the issue with the Federal Board of Revenue (FBR),” he said.

Abdul Azeem Uqaili, director projects at the Sindh Board of Investment said the provincial government is allowing duty and tax incentives on foreign investments.   Uqaili said Karachi offers immense opportunities for the foreign investments as the financial hub of the country.