There has been a lot of emphasis recently on foreign investment, and along with a repetition of what seems to be a standard instruction to all missions abroad, a Special Investment Facilitation Council was set up by the outgoing government, and it was heartily approved by the caretaker government, which summoned a meeting of this body. The SIFC focuses on agriculture, mining, information technology, defence production and energy, and on bringing investment from the Gulf. There were two high-profile events, attended by both the then PM, Mian Shehbaz Sharif, and the COAS, Gen Asim Munir, on mining and agriculture, which attracted mutation from Gulf attention from Gulf businessmen. While the SIFC, with its heavy military presence in both the apex and implementation committees, may assure investors from the Gulf that the military is on board, it should not disguise the fact that the country has problems which may make it an uphill task to attract foreign investment. Red tape is a problem, and the SIFC may provide a solution, but that is not the only problem.
The economic issues are such as to make it difficult to prepare even a feasibility study, let alone spend actual money. The foreign investor will have no certainty as to how much foreign exchange he must bring in, because he will have no idea what the rupee, in which he must do a lot of his spending, will be worth. Then there are the political issues. He would not know when elections are to take place, at which point he will have to deal with a different set of policy makers. As a result, it is almost impossible to develop a timeline for any project.
Instead of following the latest fashion, which is foreign direct investment, professionals, whether diplomats or military, should concentrate on their areas of expertise. The mechanics of FDI can be left to the professionals; instead of re-inventing the wheel, others should focus on what they do best. This focus should be exercised in support of the experts, but it should not overtake tem. Such organizations as the SIFC can only serve a useful purpose if they are given a lead by an elected government. There is the danger of them attempting to make policy themselves, if they see a vacuum above them. That can only be avoided if they are carefully supervised by the representatives of the people.
