Karachi (May-30-2024) : Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, All Karachi Industrial Alliance, and former provincial minister Mian
Zahid Hussain said on Thursday that it is sad that the investment ratio in the country has
come to the lowest level in fifty years.
He said the lack of investment could affect the availability of a new IMF program, which
would be unfortunate.
He added that some irresponsible politicians are bent on pushing the country into crisis,
which will also cost them their supporters.
Talking to the business community, the veteran business leader said that economic
stability has come to the country due to Prime Minister Shahbaz Sharif’s efforts.
However, political stability has not come, which has caused investors to be worried and
not ready to invest in Pakistan.
The Prime Minister is trying hard to attract investment in the country, and Saudi Arabia
and the United Arab Emirates have assured him of fifteen billion dollars of investment.
However, the prices of electricity and gas, the highest policy rate, and political instability
are hampering the PM’s plans.
At the same time, some politicians are not ready to play a serious and positive role and
are fanning instability.
Mian Zahid Hussain said that according to the latest data, the ratio of investment in
Pakistan has reached the lowest level in the last fifty years. During the current financial
year, it remained at 13.1 percent of the GDP, which is less than the target of 15.1.
Apart from this, there has been a significant decrease in the ratio of public and private
sector investment to GDP. This rate has come to the lowest level in 25 years.
The business leader said a year has passed since establishing the Special Investment
Facilitation Council (SIFC). However, the expected investment has not come into the
country, nor has there been any significant progress in privatization.
If electricity, gas, and failed government companies are immediately privatized, the
country could save eight billion dollars annually.
He observed that this will bring prosperity to the country and achieve political stability,
which will also make internal and external investment possible.
He said economic development will also be possible if policymakers become serious
about reforms, which will relieve the government and the people and increase the
satisfaction level of international institutions.
Mian Zahid Hussain said establishing SIFC with top civilian and military leaders in
control was the need of the hour.
The main objectives of SIFC were identifying investment opportunities, providing a
favorable environment for investors, removing obstacles, and promoting investment from
foreign and domestic sources.
Civilian and military leaders are making a lot of efforts in this regard, but the friendly
countries are not ready to go beyond signing pleasant declarations and memoranda of
understanding.
He demanded that the authorities investigate the causes of continuous investment decline,
reform the anti-business system, and solve the problems facing investment.
Mian Zahid Hussain said that industrial expansion and use of technology in the country
are very low, the black economy is constantly growing, and the security situation is not
satisfactory.
Moreover, many important policies aren’t balanced, and there is a need for continuity in
them, as distortions have disappointed local and foreign investors despite positive
sentiments.
Mian Zahid Hussain further said that another valuable year has been wasted waiting for
investment, so it should now be acknowledged that the investment environment cannot
improve without fundamental economic reforms, reduction in business costs, and a
business-friendly bureaucracy.
