Factors impeding foreign investment identified

Foreign investors, intending to invest in Pakistan's different sectors, don't have proper guidance with respect to procedures and processes.

This was the crux of an interaction with a Pakistani Danish who served in the Danish Embassy in Islamabad for a couple of years. During the interaction, Assar Qureshi, team leader of Invest in Denmark, Ministry of Foreign Affairs and former commercial attaché in Danish Embassy in Pakistan, said that trade relations between Pakistan and Denmark have been growing for last 10 years and both sides are making efforts to improve these ties.

He said that from Denmark, energy and water related equipment, food technology, shipping, medicines are imported into Pakistan whereas from Pakistan, primarily textile, sports goods, food produce and raw material are imported into Denmark. However, the volume of bilateral trade is too less. Qureshi was of the view that volume of bilateral trade between Pakistan and Denmark is just a few million dollars as Denmark is a small country.

He said Denmark is an agriculture country. Food processing technology, seed processing and dairy business are in Denmark. "Denmark exports its poultry and meet globally especially in Middle East and China," he added.

Replying to a question, he said there are issues in ease of doing business in Pakistan. Citing Danish investment in renewable energy, he said navigating with different authorities is very challenging for foreign investors.

In Denmark procedures and other steps are very clear and all the investors know where they have to approach for next phase of the project. However, in Pakistan projects are stranded due to lack of coordination in different entities.

According to Danish government, registering a formal company in Denmark is easy and can be done fast, making one ready for business within hours. The Danish labour market is characterized by flexibility, talent, high education, and high productivity coupled with competitive salary levels in a European context. The combined approach offers a high flexibility in hiring and firing practices, which is unique in Europe. Provided a valid reason exists and legal notice is given, the employer is entitled to dismiss any employee at any time, without incurring costs, making it easier for an individual business to adjust the size of its workforce in Denmark.

At 'Invest in Denmark,' the Danish government assists the businesses through in-depth analyses, benchmarks and reports on organizational scenarios and critical access to commercial and political stakeholders.

He said Pakistan embassy in Copenhagen and Danish embassy in Islamabad have very important role in bilateral investment. He was of the view that private sector companies of both countries can cooperate with each other with respect to investment.

Answering to question, he said Danish firms who have joint ventures with companies of other countries have some conditions of CSR. In an interview with Business Recorder in June 2017, Qureshi had stated that investment will follow from increased trade. There are challenges but his aim has been to slowly sensitize the Danish business community to bring them in Pakistan, establish local partnership and increase their trade flows, and as a next step explore opportunities for direct investment.