ISLAMABAD: Minister for Planning and Development Ahsan Iqbal has stated that political stability and consistency in policies are critically important to put the country on the path of development and attract Foreign Direct Investment (FDI).
Addressing an event of the Pakistan Business Council in Islamabad on Thursday, he said that diagnosis of any disease is important for its proper treatment and stated that corruption is not the cause of lack of development. He said that in Pakistan there is as much corruption as in other countries; the political instability and inconsistency in policies have been the major cause of Pakistan lagging behind in development.
The minister regretted that the FDI in Pakistan was even less compared to Myanmar. The minister said that an incremental increase in the exports growth would not serve the purpose at this point in time and in the future because the country is in need of $10 billion jump.
He said that China through the CPEC make investment in Pakistan when even domestic investors were not ready to invest let alone foreign investors. Iqbal said that when the country was facing an energy crisis, the energy policy was announced but no one was ready to invest and then China came to the help of Pakistan by signing $46 billion Memorandum of Understandings (MoUs). Initially, power projects were undertaken and $29 billion investment was made. Thar coal was exploited.
Ahsan Iqbal emphasises on exports, investment for Pakistan's economic growth
The minister said that infrastructure and energy projects were completed under the CPEC and in the second phase over $30-40 billion business-to-business investment was expected but this confidence was destroyed after 2018 by pointing out some defects.
The minister said that the CPEC was aimed at transforming Pakistan into an industrial economy.
The minister said political stability and continuity of policies was a must to take the country forward on the path of development.
He said apart from increasing the tax-to-GDP ratio from existing nine percent to 18-20 percent, to increase domestic and foreign investment and exports are very important to steer the country out of the prevailing challenges. He said that a few weeks ago everyone was talking about default and people were betting about the dollar rate but now neither anybody talks about default and those who had bet the dollar rate are lamenting.
Copyright Business Recorder, 2022
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