Islamabad, Pakistan: A fresh debate on the future of Foreign Direct Investment (FDI) in Pakistan has intensified following the withdrawal of several global companies and a noticeable decline in new investment interest. Experts argue that the root cause is not a lack of resources or market size, but rather policy uncertainty and institutional fragility.
According to economic analysis, while Pakistan possesses a large market and resources, investors primarily seek long-term stability, transparent regulations, and enforceable contracts. The analysis highlights that countries like Vietnam, Bangladesh, and Malaysia have successfully attracted investors through consistent policy frameworks, whereas the frequent alteration of rules and incentives in Pakistan has eroded investor confidence.
Six Core Measures for Sustainable Investment: Analysts assert that Pakistan must implement six fundamental measures to achieve sustainable investment:
- Policy Predictability: Eliminating uncertainty in government policies.
- Transparent Tax System: Establishing a clear and stable tax structure.
- Easy Repatriation of Profits: Ensuring foreign companies can easily transfer profits out of the country.
- Export Focus: Prioritizing and boosting export growth.
- Expedited Dispute Resolution: Creating a fast and reliable system for resolving investment-related disputes.
- Institutional Stability: Ensuring resilience and consistency in governmental and state institutions.
The experts concluded that the world recognizes Pakistan’s potential. However, the nation must now translate this potential into reality by restoring trust and predictability within its system.
