Lahore, October 17, 2012 (PPI-OT): The Lahore Chamber of Commerce and Industry has appealed to the government to take note of constant decline in Foreign Direct Investment.
The LCCI President Farooq Iftikhar was reacting to the sharp decline in foreign investment that fell by 67 percent to $87 million during July-September 2012-13 against $263 million the same period last year.
He said that energy crisis, lack of transparency, law and order situation were the major factors keeping foreign investors away.
He said that increased risk factor about investing into Pakistan was hurting the entire economy and needed to be tackled through a methodical and visionary policy approach by involving major chambers of commerce of the country.
He feared the fall in Foreign Direct Investment (FDI) was likely to affect adversely the country’s economic growth therefore the government should adopt remedial measures to reverse this trend.
The LCCI President said that foreign direct investment is one of the fastest and most successful ways for poor nations to develop and increase their per capita income. He said that FDI also provides foreign capital and funds besides enhancement in skills, technology and create more job opportunities.
The lethargic government response to deal with aggravating energy crisis was also affecting adversely the local investment scenario besides sending negative signal to potential foreign investors.
The LCCI President said that a special committee comprising members of the Parliament, presidents of chambers of commerce and industry and representatives of other trade and industrial associations should be formed to identify ways and means to attract foreign investment that was a prerequisite to economic growth.
He said the proposed committee should also be tasked to look into the existing policy framework and if there was a need to redesign them.
He said key issues including power shortage, poor infrastructure, law and order situation and other vital factors, should be addressed on priority basis to improve the bleak foreign investment condition to put the country on track of economic growth and development.
Government should ensure all institutions to remain immune to any undue interference as this would help improve quality of governance without which foreign investment could not be attracted.
A number of sectors in Pakistan including infrastructure development, coal, energy, agriculture, livestock, textiles and pharmaceutical offer huge investment opportunities to foreign investors but unfortunately due to absence of proper marketing strategy, law and order, lack of transparency, these opportunities are not attracting foreign investment despite being lucrative , he added.
For more information, contact:
Lahore Chamber of Commerce and Industry (LCCI)
Lahore -54000, Pakistan
Tel: +9242 111 222 499
Fax: +92 42 636 8854