Pakistan has all the potentials to attract a significantly higher foreign direct investment, provided it improves law and order and ensures efficient energy at an optimal cost, said the president of Overseas Investors Chamber of Commerce and Industry (OICCI), on Tuesday. Speaking at the launch of ‘Perception and Investment Survey 2013’ at the chamber’s office, Kimihide Ando said, “Pakistan needs to tackle the governance challenge to capitalise on demographic and democratic dividends.” He hoped that the government will systematically address weak areas identified in the 2013 OICCI survey, which is based on feedback only from foreign investors who are members of OICCI.The respondents perceive ease of doing business in Pakistan to be better or same compared to India, Philippines, Sri Lanka and Bangladesh, and more or less equal to Vietnam, despite the fact that recent macroeconomic indicators of these countries have been better than Pakistan. It indicates that nearly all existing foreign investors intend to stay in Pakistan and around two-thirds plan to expand operations. About 43 per cent plans to invest more than before. Some 83pc of OICCI members have hopes the present government will improve business climate, with 75pc stating they will now recommend more foreign direct investment into Pakistan. Respondents also expect government to resolve issues, rectify regressive policies and enhance accountability in governance. With investments expected at $3 billion over the next five years, Pakistan is ranked favourably for some aspects of doing business such as “repatriation of profits” and “access to local finance”. The delay in settling tax refunds remains the most serious concern for foreign investors. The lack of smooth coordination between FBR and provincial revenue boards aggravates the issue further. The insufficient protection of trademarks and intellectual property rights also continues to be an issue for investors. With the perception of the present dispensation being more favourable than in 2011, ‘political instability’, which emerged as the third biggest challenge in the last survey, stands replaced by the recent ‘rupee depreciation’ in the present one. Members belonging to the pharmaceutical sector continue to voice their concerns since the setting up of a Drug Regulatory Authority has not yet delivered the desired key policies and clear guidelines including for fixing of the sale prices of pharmaceutical products, new drug registration and contract manufacturing.
Posted on: Thu, 30 Jan 2014 07:03:44 +0000
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