Italy will invest in different sectors of Pakistan, including energy, textile, agriculture and marble sectors, to boost its economy. This was stated by Italian Ambassador Vincenzo Prati during a press conference along with the Chairman of the Board of Investment (BoI) Saleem Mandiwala here on Tuesday.
The ambassador said: "We are aware of the fact that the problem of insecurity has become a major issue in Pakistan, but we want to initiate various projects in energy, marble, agriculture and textile sectors in Lahore, Karachi and Islamabad".
The ambassador said that despite the hurdles in Pakistan, there were lots of investment opportunities in various sectors. About the exact amount of foreign direct investment (FDI), the ambassador said that substantial numbers of Italian companies were ready to come along with the modern machineries and equipments in Pakistan.
Pakistan and Italy had already signed a memorandum of understanding (MoU) regarding the co-operation in different sectors. Responding to a question, the ambassador said the law and order situation definitely affected the FDI in Pakistan, but there were several opportunities for enhancing investment, particularly in energy, marble and granite sectors.
Speaking next, the BoI Chairman rejected the report that foreign investors were hesitant to invest in Pakistan due to deteriorated security situation. He noted that still foreign businessmen were visiting Pakistan to seek investment opportunities. Some times FDI increased and in other times, it slowed down, he added. The government would facilitate all those companies that wanted to invest in Pakistan, he said.
He said that foreign investors were still investing in various fields despite facing law and order problems, and added that the government was taking appropriate measures for improving law and order situation. He said that Pakistan had unique position and its long border with Afghanistan was main cause of disturbance along with the international war on terror.
Mandiwala claimed that Pakistan was heaven for every investor and the government offered a number of incentives to foreign investors. To a question, he said there was no target fixed to attract investment. But, the government was taking many corrective measures and providing incentives to strengthen the confidence of local and foreign investors, and expressed the hope that the FDI would enhance in next few months.
He said the local investors were flying out of the country due to the rumours about fragile economic situation. He, however, that economic situation was under control and the local investors should not believe in false statements and forecasts.
Replying to a question, the BoI Chairman said that the former government made investment in certain sectors, mainly in banking and services, and neglected manufacturing sectors. He stressed the need for increased investment in manufacturing sector. "We also support investment in services sector, but the present government's focus was on increasing investment in neglected sector, ie manufacturing," he maintained.
He said the foreign investors had some concerns regarding law and order situation, but it did not mean that they were investing or winding up their business operations in Pakistan. He disclosed that "we are hopeful of getting investment from Saudi Arabia as our negotiations in this regard are in process".
He lamented that war on Pak-Afghan border had also discouraged the foreign investment. The BoI Chairman maintained that Pakistan was offering great business opportunities to the foreign investors. The foreign investors could get 40 percent return on their investment, while in other parts of the world; the return was just five percent. He admitted that the war on terrorism had damaged the image of Pakistan in global level.
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