KARACHI: The Employer’s Federation of Pakistan (EFP) urges the Government of Pakistan to take action against economic hardships the country is facing. The economic situation is getting worse by day and the GOP’s inconsistent policies are just adding fuel to the fire.
“Pakistan attracted Foreign Direct investment (FDI) amounting to over US $430 million during July-November (Fiscal Year 2023). In the same period of the previous fiscal year (Fiscal Year 2022), Foreign Direct Investments worth over US $885 million was obtained. This indicates over a fifty percent (50%) decline in FDI.”
Ismail Suttar, President, Employer’s Federation of Pakistan (EFP), said that this presents an alarming situation for the economy of Pakistan. Foreign investors have become wary of investing in Pakistan due to the worsening economic situation. The Government must prioritize consistency in economic policy and reform. Foreign institutions and individuals fear that Pakistan may not be able to meet its debt obligations.
The EFP president added that the Government of Pakistan should be treating this as an economic emergency and thus take crucial steps to regain foreign investor confidence as FDI plays a crucial role in attaining the country’s socio-economic goals.
“FDI brings along various employment opportunities for the people of Pakistan and helps them improve their skills through transfer of technological and strategic managerial skills, and helps in assimilating the domestic economy with the global economy. The main challenge in attracting FDI lies in the ground realities of bad governance, an economy in distress, and a transformative phase like the rest of the world.”
Suttar was of the view that in order to attract funds from foreign investors, the GOP will have to implement steps to strengthen Pakistan’s economic reputation internationally. This directly links to strengthening the country’s Key Economic Indicators such as Gross Domestic Product (GDP), Balance of Payments Position, debt obligations, etc.
He said, “The GOP must focus on debt restructuring as through proper debt restructuring, Pakistan can assure payment of debt obligations through systematic and calculated repayments. This will further increase investor confidence and can thus lead to an improvement in FDI received by Pakistan.
