Government advised to focus on wooing long-term FDI

J.P. Morgan President Andrew Crockett said Pakistan needs to focus on attracting long-term investment, package and market viable sectors for foreign direct investment, substantially increase its exports, and focus on increasing its growth trajectory to achieve a higher GDP growth rate.
J.P. Morgan is one of the lead managers of Eurobond.
In a meeting with Finance Minister Shaukat Aziz here on Thursday, Andrew Crockett agreed that healthy growth rate of over 5.3 percent, focus on improving agricultural production, better performance by the large scale manufacturing, services sector, consistency of reforms and deregulation have helped Pakistan gain confidence of international investors.
Andrew Crockett said the successful launching of Eurobond, its impact on international capital markets and response received from fund managers have enhanced investors' confidence, which has introduced Pakistan as an attractive investment destination.
The two sides agreed that launching of Eurobond has positioned Pakistan in international capital markets. Pakistan could capitalise on its entry by further improving its economic performance to attract more investment in the country, and can also improve its international credit rating.
Shaukat Aziz invited J.P. Morgan to diversify its investment in Pakistan, especially in the asset management and the corporate finance, and take advantage from government's policy to open foreign bank branches in the country.
He said the government would continue financial, structural and capital market reforms, further strengthen the State Bank and the SECP to regulate the financial sector, continue to keep inflation in check and encourage investment through low interest rates, better governance and continued structural reforms. Similarly, the government would continue to focus on infrastructure, transport, communications and to improve services sector, including health and education facilities in the country, he added.
The finance minister said Pakistan would exit from the IMF Programme this year, diversify its funding sources, and put the country on a higher growth path. He also said Pakistan would continue to improve investment environment through good governance, improved administrative and financial services and investing in human capital.
Shaukat Aziz said Pakistan, being a country of 145 million people and competitive cost of doing business, is as an attractive investment destination for contract manufacturing and export-oriented industries. He appreciated JP Morgan's involvement in Pakistan and encouraged Crockett to expand their activities here.