The figures claimed by the Board of Investment show the country received nearly $1.38 billion foreign direct investment during the first six months of the current fiscal year in a situation when the global direct investment fell by 16 percent during the previous fiscal year. Most of the investment came from China though various European countries, including the United States also invested in Pakistan. When flow of investment steadily went up in several developing countries, including India, Bangladesh and Vietnam, Pakistan received moderate inflow of foreign cash during the period. The developing economies in the region have not only achieved macroeconomic fundamentals, but also accelerated their growth rate by providing tax concessions and bringing paradigm shift in their economic policies. When the global flow of direct investment is expected to reach $1.8 trillion this year, the developing economies are ready to further boost their growth rate and business confidence in the emerging situation. The corporate sector and multi-national companies are always ready for investment if they are provided tax concessions and business friendly environment. Bangladesh is the best example of bringing basic changes in its economic policies and attracted investment not only from developed economies, but also from the developing countries like Pakistan.
At a time various major economies are facing monotony and high cost of production due to expensive labour, Pakistan can benefit from the situation if it introduces structural reforms in taxation system and basic changes in its economic policies.
However, some reports suggest the global gross domestic product growth will edge up to 3.1 percent and most developed nations are likely to get lion share of foreign direct investment. The United States will be the largest recipient of the foreign direct investment as it is expecting $311 billion this year followed by China which will receive $144 billion. If Pakistan wants to become hub of the global investment, it will have to open its land for foreign investors.
The global investment interest in Pakistan will ensure not only security of Pakistan, but also prosperity of its people. Apart from introducing tax holidays, there is a need to minimize militant face of Pakistan. All the foreigners, who are staying and overstaying in Pakistan, must be regulated in a proper manner and their movement should be restricted. The legal and illegal immigrants are the biggest threat to the national security and the national economy.
