ISLAMABAD: The Board of Investment (BOI) plans to launch a new initiative called ‘Invest Pakistan’ to encourage foreign investment in the country. The Cabinet will approve the initiative next week.
The initiative will be a flagship project of the BOI, which focuses on investment realization, sustainability, and resolving binding constraints in investment decisions.
To facilitate the initiative, BOI will establish a new public-private partnership company named ‘Invest Pakistan,’ which will be registered with the Securities Exchange Commission of Pakistan (SECP).
The new company will operate as a joint venture between the government and private sector partners, bringing together the expertise and resources of both parties to promote investment in the country.
‘Invest Pakistan’ initiative
Invest Pakistan will serve as an investment promotion agency with the primary objective of creating a more business-friendly environment in the country and encouraging foreign investment. The company will work towards transforming Pakistan’s investment landscape and realizing its potential as an attractive market for investment.
Despite Pakistan’s growing young middle-class and attractive market size, investment rates have remained low, with net foreign direct investment being either negative or neutral for several years. To address this, Invest Pakistan will focus on creating an environment that is attractive to foreign investors. According to the concept note, investment attractiveness cannot be created by itself or through the promotion of investable assets.
Once approved, Invest Pakistan will work towards attracting foreign investment by leveraging the strengths of both the government and the private sector. Through this joint venture, the company will undertake various initiatives. The aim will be at increasing investment and promote Pakistan as an attractive investment destination.
Future Contributions of ‘invest Pakistan’
Invest Pakistan is expected to contribute significantly to Pakistan’s economic growth. It will contribute by increasing foreign investment, creating job opportunities, and promoting sustainable development. The company will focus on providing a supportive ecosystem for investors, facilitating investment-related processes, and providing incentives to encourage investment.
Aims
Invest Pakistan will be a joint venture between the government and private sector partners. This venture is aimed at creating a more business-friendly environment in the country to encourage foreign investment. The initiative has the potential to transform Pakistan’s investment landscape and contribute significantly to the country’s economic growth.
Pakistan is in need of both immediate and long-term solutions. In order to address the low level of FDI and the potential macroeconomic crisis. Despite positive factors such as market size and infrastructure, sub-optimal factors such as political instability, inadequate economic governance, regulatory burden, and accountability have lowered profitability on investments.
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To attract investors, work needs to be done in these areas. Sources suggest that the primary factor determining investment is the risk-adjusted rate of return. If investors are convinced of the net returns, they will invest regardless of other systematic risks and factors.
However, investment realization can only occur if returns are consistent and assured for the medium term. Therefore, it is important to focus on improving these sub-optimal factors to build investors’ interest.
To achieve this, the BOI (Board of Investment) will be augmented in capacity and functions that are currently inadequate. As these new functions gain strength and show results. They will further help reform the overall organization to become more goal and outcome-oriented.
In conclusion, the challenges facing Pakistan’s investment climate require immediate attention and long-term fixes. By addressing the sub-optimal factors that have hindered profitability and by focusing on providing consistent returns, Pakistan can build investor interest and improve its overall investment climate.
