Fozia Azam

With a focus on establishing Pakistan as a destination for foreign direct investment (FDI) in the region, the Board of Investment (BOI) is all set to launch the Pakistan Investment Policy (PIP) 2023, with an approach to boost Pakistan’s economic growth trajectory and enhance participation in the global value chains. According to the draft of PIP 2023, a copy of which is available with WealthPK, the policy intends to further improve the investment climate in the country.

The implementation of the investment policy is expected to have a substantial impact on job creation and economic growth. By attracting investment and encouraging entrepreneurship, it will create new business opportunities and provide employment for the growing Pakistani workforce, ultimately contributing to a more prosperous nation. The overarching strategy of the policy is to establish Pakistan as a destination of choice for FDI through employing five investment aspirations, including increased economic complexity, creation of high-value jobs, extending domestic linkages, developing new and existing clusters, and improving inclusivity.

According to an official of the BOI, the new investment policy signifies the government’s commitment to creating an investor-friendly environment. By deregulating and simplifying bureaucratic processes, reducing red tape, and improving ease of doing business, the policy aims to eliminate barriers and create attractive investment incentives for both domestic and foreign investors. The investment policy will also provide a much-needed emphasis on diversifying investment opportunities across various sectors. The focus on sectors such as renewable energy, agriculture, manufacturing, and services signifies a strategic approach to harnessing Pakistan’s untapped potential while ensuring sustainability and innovation.

The investment policy also aims to strengthen investor protection measures, emphasising the importance of transparency, certainty, and fair dispute resolution mechanisms. By establishing clear rules and regulations, as well as providing legal and contractual protection, the policy provides a stronger sense of security for investors, reducing risks associated with investing in Pakistan.

The new investment policy champions collaboration with international actors and organisations. This will involve establishing strategic partnerships and mutually beneficial agreements to attract large-scale foreign investment and leverage specialised expertise. These partnerships can not only bring in capital, but also drive knowledge transfer and technological advancement to stimulate the growth of local industries.

Experts believe that the launch of Pakistan’s investment policy marks a significant milestone in the country’s economic growth trajectory. With a renewed focus on creating an investor-friendly environment, infrastructure development, investor protection, and international collaboration, the policy offers a promising landscape of opportunities for domestic and foreign investors. By effectively implementing this comprehensive investment policy, Pakistan can pave the way for sustainable economic development, job creation, and improved living standards for its citizens.

Credit: INP-WealthPk