ISLAMABAD: Massive Foreign Direct Investment (FDI) is expected in energy and telecommunication sector of the country after transition of power to the newly elected government of Pakistan Muslim League -Nawaz (PML-N) from the caretakers. An official of the Board of Investment (BOI) on condition of anonymity told Business Recorder that several business delegations belonging to European countries had contacted the BOI and shown interest in investment in power sector, adding that a private firm of Bulgaria is interested to set-up 100 MW power plant in the country.
"The PML-N's tilt toward Muslims countries also encourages the respective countries investors particularly from UAE and Saudi Arabia, and several have shown interest to invest in telecommunication sector particularly in 3-G technology," the official added. The BOI is going to organise investment exhibitions in August 2013 in Denmark in collaboration with Pakistan Embassy, the official said.
He said that Special Economic Zones (SEZs) would be set-up in the country at different locations to ensure that the cost of doing business is lower in these zones and incentives would also be provided to industrial investors. SEZs serve to facilitate site development--- the provision and financing of adequate business infrastructure, the protection of security of business installations, and promotion of industry cluster, the official said.
The official maintained that the BOI will become the Secretariat of the Board of Approvals and will take charge of all administrative functions at the federal level to launch the SEZ programme, supervise the operation of SEZs and promote and facilitate (foreign) investments in SEZs. "These functions are primarily (though not exclusively) regulatory functions and thus differ fundamentally from BOI's investment promotion functions. The SEZ administration thus in practice adds a new institution to the BOI," the official added.
He maintained that interest of foreign investors to invest in power sector of the country was a positive sign, adding that tone and tenor of the delegations visiting the country reflect a confidence that the PML-N government would be able to overcome major challenges---law and order and power crisis.
The approval of Foreign Direct Investment (FDI) strategy 2013-17 may play an important role in strengthening investors confidence in the stability of investment conditions through concluding international investment agreements, the official added. According to the BOI's FDI strategy 2013-17, it would act as an administrative broker between foreign investors and Pakistani authorities; would take up requests of investors for permits, licenses, the provision of utilities and more, and obtain the necessary decisions from the authorities concerned in an inter-agency administrative process.
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