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Need to clinch foreign investment

Need to clinch foreign investment

According to the perception survey conducted by the American Business Council, at least 78 percent of members have planned to invest in Pakistan over the next year. The results show 13 percent increase in the survey conducted last year due to satisfactory economic situation of the country. Various world forums are expressing their optimism about the economy of Pakistan, including the World Bank and the International Monetary Fund. With regard to Pakistan’s economic relations with the United States, they remained sometime hot and sometime cold. The United States is the largest economy of the world and a few hundred billion dollars business with Pakistan can change the lot of this nation. The US economy is the consumer economy and is based on research and development which Pakistan lacks in every field of life. The nation, which is considered as the product of democracy, has failed to devise a system of governance and economic development. The relations with the United States are important, but the leadership of this country could not cash its relations in business terms. In the media, Pakistan is always positioned as the unreliable partner of the United States despite the fact Islamabad has gone extra miles to serve and protect the US interests.

Now the members of the council have shown better ratio of interest in the fields of business and investment in Pakistan. The perception survey gives an opportunity to the members to analyze various factors of the Pakistani economy and growth opportunities in the country. It is important to note that the foreign investors, whether the US or other nations, give great importance to the economic and investment policies of the country. The abrupt changes in the laws and policies send wrong signals to the foreign investors who want to put their money in this country. It is important for the government to carefully devise policies and ensure their implementation. The country is facing complex laws where the investors face various problems in the establishment of businesses. Pakistan is at the lowest ranks in ease of doing business index as well as complex laws are eroding the chances of investment in the country. So far, whether it is the finance ministry or the commerce ministry, the performance is not satisfactory as financial stability has been achieved after acquiring foreign loans and exports are falling. There are vast business and trade opportunities in Pakistan but the government will have to create conducive environment for foreign investors.

Until the government changes the rules of business, the country will continue to face economic crisis, financial instability and law and order.