Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain said on Thursday that it is sad that the country’s investment ratio has come to the lowest level in fifty years. He said the lack of investment could affect the availability of a new IMF program, which would be unfortunate. He added that some irresponsible politicians are bent on pushing the country into crisis, which will also cost them their supporters.
Talking to the business community, the veteran business leader said that economic stability has come to the country due to Prime Minister Shahbaz Sharif’s efforts. However, political stability has not come, which has caused investors to be worried and not ready to invest in Pakistan.
The Prime Minister is trying hard to attract investment in the country, and Saudi Arabia and the United Arab Emirates have assured him of fifteen billion dollars of investment.
However, the prices of electricity and gas, the highest policy rate, and political instability hamper the PM’s plans. At the same time, some politicians are not ready to play a serious and positive role and are fanning instability.
Mian Zahid Hussain said that according to the latest data, Pakistan’s investment ratio has reached its lowest level in fifty years. During the current financial year, it remained at 13.1 percent of the GDP, which is less than the target of 15.1. Apart from this, there has been a significant decrease in the ratio of public and private sector investment to GDP. This rate has come to the lowest level in 25 years.
The business leader said a year has passed since establishing the Special Investment Facilitation Council (SIFC). However, the expected investment has not come into the country, nor has any significant progress in privatization. The country could save eight billion dollars annually if electricity, gas, and failed government companies are immediately privatized.
He observed that this would bring prosperity to the country and achieve political stability, making internal and external investment possible. He said economic development will also be possible if policymakers become serious about reforms, which will relieve the government and the people and increase the satisfaction level of international institutions.
Mian Zahid Hussain said establishing SIFC with top civilian and military leaders in control was the need of the hour.
The main objectives of SIFC were identifying investment opportunities, providing a favorable environment for investors, removing obstacles, and promoting investment from foreign and domestic sources. Civilian and military leaders are making great efforts in this regard, but the friendly countries are not ready to go beyond signing pleasant declarations and memoranda of understanding.
He demanded that the authorities investigate the causes of continuous investment decline, reform the anti-business system, and solve the problems facing investment.
Mian Zahid Hussain said that industrial expansion and use of technology in the country are very low, the black economy is constantly growing, and the security situation is not satisfactory.
Moreover, many important policies aren’t balanced, and there is a need for continuity in them, as distortions have disappointed local and foreign investors despite positive sentiments.
Mian Zahid Hussain further said that another valuable year has been wasted waiting for investment, so it should now be acknowledged that the investment environment cannot improve without fundamental economic reforms, reduction in business costs, and a business-friendly bureaucracy.
