Islamabad [Pakistan], April 27 (ANI): Despite its claims over providing ease of doing business, the ruling Imran Khan-led PTI government has failed to lure foreign investors to the country, according to a recent media report.
In an article dated Sunday, the editorial board of The Express Tribune wrote that according to the latest data, foreign direct investment (FDI) has plummeted to USD 1.395 billion during the July-March period of the ongoing fiscal year as compared to USD 2.15 billion in the same period of last fiscal. This shows a 35.1 per cent fall in foreign investment flows.
"So while the impact of the raging pandemic is there, it's also a fact that Pakistan has never been a go-to destination for foreign investors. There are a variety of reasons for that including lack of political stability and security in the country as well as unfavourable business climate marked by absence of tax incentives, high power and gas tariffs, low growth potential, dilapidated transport infrastructure," the Sunday editorial read.
"No wonder, the volume of foreign direct investment in Pakistan has been abysmally low," it added.
Besides, investment flows from China for CPEC-related projects constitute much of the total. During the period under study i.e. the first three quarters of the ongoing fiscal year, inflows from China stand at $859.3 million which is equal to 46 per cent of total foreign investment, the editorial pointed out.
"However, what must be a cause for concern for the government is that these inflows have also decreased - to $650.8 or by 24 per cent - year on year," the editorial from The Express Tribune read.
According to a report last week, Pakistan's economy is in bad shape is no more a revelation, as its project performance dropped to just 58 per cent in the duration of 2018-20, from 70 per cent in 2017-19 due to poor performance in the Public Sector Management (PSM) and water sectors.
An editorial published in The News International published on Wednesday read: "Pakistan's economy is in bad shape is no more a revelation, but the Independent Evaluation Department (IED)'s report of the Asian Development Bank (ADB) is revealing in its contents. In its latest report, the ADB has disclosed that Pakistan's project performance dropped to just 58 per cent in the duration of 2018-20, from 70 per cent in 2017-19."
Moreover, the 35 per cent year-on-year decline in Foreign Direct Investment (FDI) in the first three-quarters of the outgoing fiscal is a surprise only to those who haven't been paying attention to investment patterns in the country.
An editorial in Daily Times published on Wednesday pointed out, "The 35 per cent year-on-year decline in FDI in the first three-quarters of the outgoing fiscal is a surprise only to those who haven't been paying attention to investment patterns in the country." (ANI)