Apropos 'Need investment? Do some introspection!' carried by Business Recorder in its 'Analyses and Comments' columns, on October 30, it has been argued that nearly all the government officials gave their sweet talk [at the investment conference of Board of Investment] about the incentives currently offered or those soon-to-be offered to prospective investors.
But no emphasis was laid on the government's plans to step up on governance reforms. In a country where reform plans have been catching dust since many years - and whose government has precious little to show in terms of improvement in governance even after 18 months into power - how are investors expected to take Pakistan seriously if reform plans aren't spelled out in detail with a promise to stick to it."
The analysis has, however, lost sight of the fact that the country that seeks to attract foreign direct investment is required to appreciate host country's policies towards attracting FDI and benefiting from foreign corporate presence are largely equivalent to policies for mobilising domestic resources for productive investment. What has subsequent Pakistani government achieved in the area of National Saving Schemes (NSS)? Seen from a prospective investor's prism, a host country is required to ensure a visible improvement in macroeconomic and institutional frameworks; creation of a regulatory environment that is transparent and non-discriminatory, etc.
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