Minister for Parliamentary Affairs Murtaza Javed Abbasi said that Pakistan’s net foreign direct investment (FDI) fell by 58.7% during the first half of the current fiscal year (July-December) compared to the same time in 2021–22. In response to a question from Senator Mushtaq Ahmed, the minister stated that the net FDI reduced from $1,114.8 million to $460.9 million during the period under review.

He stated that according to data from the State Bank of Pakistan for the year 2021–22, the net FDI was $1,867.8 million, 2.6% more than $1,820.8 million in the same period of the previous year. However, the FDI fell by 33.7% to $90.8 million in February 2022 from $137.0 million, and by 45.5% to $396.0 million from $726.5 million during July to October 2022.

He outlined the main causes of the decline in FDI, citing the COVID-19 pandemic, the high cost of doing business in the country, macroeconomic pressures like the current account and balance of payment deficit, disruptions in the food supply, and increased energy prices as a result of the conflict in the Ukraine.

He said that the administration is doing everything it can to assist investors and draw FDI to the country. He noted that sector reforms and efforts like the Pakistan Regulatory Modernization Initiative are helping to enhance the business climate. To encourage industrialisation in the country, support is being given for the creation of special economic zones. He said the issuance of visas, branch/liaison office, security clearance, and airport entrance passes are being facilitated.

He said that a dedicated cell connected to an Internet portal serves as the government's channel for resolving investment complaints. For the convenience of potential investors, he continued, the Board of Investment's website has built portals for projects and incentives.

Credit: Independent News Pakistan-WealthPk