According to officials of the Overseas Investors Chamber of Commerce and Industry, Pakistan is visible on the radar of international investors but still there is long way to go to attract foreign investment. The country is facing political uncertainty, inconsistent economic policies and irrational tax rates. Pakistan is one of the heaviest taxed countries in the world and most of the taxes are not only irrational, but rates are also considerably higher.
Due to its strong geo-political location, it is difficult for the investors to ignore it for long, but it all depends on the plans and policies of the government to stimulate business, trade and investment activities. Despite the fact that Pakistan is on the radar of foreign investors, political uncertainty, energy shortage and law and order are a few reasons which are keeping the foreign investors at bay. Unfortunately, in this age of modern technology, the government lacks basic infrastructure and coordination among its various components and organs. This not only leads to policy failure, but also administrative failure and loss of the public money at the end. The policies are made to break and without taking into consideration the ground realities. This also leads to collateral damage for the nation and disappointments.
According to the officials, Pakistan is a consumers market of 220 million people with over five percent growth rate in the gross domestic product and offers great opportunities to foreign investors. There is a need to explore areas for new investments where investors from the United States and European Union should make investments. Currently, the country working only 30 percent of its potential and there is a need to push it to the optimum level by attracting investment and stimulating industrial activities. The European companies have made heavy investment in China whereas they could also benefit if invest in Pakistan. So far, Pakistan has poor ranking on the ease of doing business index, but still there exists opportunities for the formal sector to capture the open markets. The chamber suggests the government to discourage the informal sector and to open new vistas of foreign direct investment in the formal sector. Again, the government has to improve its administrative capabilities and devise policies on long term basis. There is little coordination between the provincial and the federal governments as well as within various organs of the state. Until the federal government adopts a new administrative order, things will continue to change at the worst level.
