KARACHI – Chairman of National Business Group of FPCCI, President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Wednesday said circular debt is increasing despite a hefty hike of 15 percent in the power tariff.
He said that remittances are increasing while Foreign Direct Investment is sliding at a rapid pace which should be noted.
Mian Zahid Hussain said that according to a study the circular debt increase by Rs436 billion to hit the mark of 2.8 trillion rupees by the end of this fiscal.
Talking to the business community, the veteran business leader said that the FDI during the first seven months of the current fiscal has reduced to $1.1 billion as compared to $1.6 trillion during the corresponding period.
Last year the FDI in January was $219 million which has been reduced by 192.7 million dollars which the investment from China has dried by 20 percent to $402.8 million.
He said that foreign investors are targeting coal, oil and gas and financial sector but it is not even one percent of the GDP while competing nations are attracting FDI equal to three percent of their GDP.
Reasons behind low FDI include red tape, inconsistent policies, shortage of skilled labour, energy crisis and feeble infrastructure.
He said that FDI is necessary for a country’s image. technology transfer, competitiveness, exports, revenue and employment therefore this sector should get attention.
The recent wave of terrorism in the northern parts of the country should be controlled without delay otherwise it will deter local and foreign investors.
