FAISALABAD: All economic indicators have improved considerably. With the completion of new power houses and import of LNG, the energy crisis will be over that will automatically attract new Foreign Direct Investment (FDI) in Pakistan, said State Minister/Chairman Board of Investment Dr. Miftah Ismail.
Addressing a function in Faisalabad Chamber of Commerce and Industry (FCCI) on Monday, he said just three or four years back the stock market was dwindling at 19000 points that has now crossed the barriers of 55000 points. Similarly, the GDP has jumped to five percent from 2.8 percent in 2013. He said agriculture production has also recorded a sizeable increase that will help in containing inflation by around 3.5 percent. However the textile package may further increase its production up to 4.1 percent which is reasonable within the given circumstances.
He said despite all the positive indicators, the decline in exports is very alarming and government was taking necessary steps to stabilize exports. The energy crisis is a major impediment in attracting domestic as well as Foreign Direct Investment (FDI), he added. He said elimination of energy crisis will help attract FDI in a big way as the other factors including connectivity have also been resolved. He said China-Pakistan Economic Corridor is a major project and in its first phase 51 billion dollars are expected to be invested out of which 34 billion dollars have been earmarked for the power plants. He clarified that this is not a loan and these plants are being installed on the same terms and conditions as were allowed by Benazir Bhutto in 1994 and by Musharraf in 2002.
Responding to a question about the five power plants being installed in Punjab, he said three are being funded by the provincial government while two are installed by private sector. He said the government was also considering a proposal to privatize these plants immediately after their completion.
Chairman Board of Investment said the portfolio of National Highway Authority was only Rs30billion when this government took over. Now it has increased to Rs140billion and a comprehensive road network is being laid across the country including Multan-Lahore Motorway. He said that nine industrial zones have been proposed under the CPEC and same facilities would be provided to these zones to the Pakistanis as well as Chinese investors to set up their industrial units.
Regarding ease of doing business, he said improvement in it is visible but we have to do much more to attract and facilitate the local as well as foreign investors. He also assured the local business community of protecting their legitimate interests at all costs and in this connection he will prefer joint ventures with Chinese partners. He asked the FCCI members to visit China and explore the Chinese investors who could launch joint ventures in Pakistan. Responding to yet another question, he added industrial sector in Punjab was getting 45 percent natural gas at local price while the remaining LNG is being supplied to them at international rates. He also contradicted news that six lakh Chinese will come to Balochistan every year. He said the government has issued only 2500 visas to Chinese up till now.
Earlier, Engineer Muhammad Saeed Sheikh, President FCCI in his address of welcome, lauded the efforts of the government who has been providing capital for the establishment of new industrial units at lowest interest rate. Similarly, the energy crisis is over and industries are getting electricity and gas round the clock.
Vice-President Engineer Ahmad Hassan said the local industrialists have some apprehensions about the CPEC and in this connection a comprehensive questionnaire has already been sent to the government quarters concerned.
