Pakistan has deputed new counselors in China to promote foreign investment in industrialisation under the second phase of the latter-financed economic projects in the south Asian economy.
This is the only leg the government has to stand on in a recent claim that Pakistan is going to receive in excess of $50 billion in Foreign Direct Investment (FDI) by 2023. The startling declaration was made by the Board of Investment (BoI) which has given little indication as to how it came to this figure or what reason they have to believe this is so other than wishful thinking. Announced by Federal Secretary Fareeha Mazhar, if there is $50 billion worth of FDI in the country by 2023, then the government must and should be lauded for its efforts, and the federal secretary in question that made the announcement was given a grand parade with garlands and bands. However, at the risk of sounding a little cynical, we must ask how this is possible?
According to the State Bank, the data for the first ten months has shown that the inflow of FDI in the country has been a mere $1.55 billion. Now, for this year alone, the government has claimed that the inflow of FDI will be $5 billion. If it does happen, it will obviously be a very pleasant surprise. And it is possible, but even if it happens, the figure of $50 billion sounds as ludicrous as it is astronomical. And once more, it must be reiterated that $50 billion is a good goal to have, but what have we done to ensure that we get there? What is giving the government this confidence?
Has bureaucratic red taping ended? Have we managed to improve our property laws? Has the regional trade volume increased? Have we made the sort of leaps and strides in improving ease of doing business that we desperately need to make? All that the government has up its sleeve is the appointment of honorary investment counselors in eight Chinese regions, and even they cannot be expected to work solely for the benefit of the nation.
If this government manages to get the $50 billion in FDI that they are confident they will get, it will be a major achievement to be boasted about. But first, they must answer these questions.
Sane article.