KARACHI, Oct 2: Speakers at a seminar on Wednesday unanimously identified negative image and poor law and order situation as two key deterrents to foreign investment in Pakistan.

The seminar titled Economic Development in Sindh was organised by Dawn group of newspapers.

“The basic issue is the image of the country (and) the law and order,” said managing director of Karachi Stock Exchange Moin M. Fudda.

In his concluding remarks as chairman of the second session of the seminar he said with a pinch of salt: “When we meet in the evenings and have foreigners with us we criticise our country.”

“Let us make a pledge...and I do make one...that we would stop criticising our country (before the foreigners),” he said as the audience nodded approvingly.

Fudda also identified “the lack of norms” as a major hurdle in promoting an investment-friendly culture and was quick to quote a very handy example: “I had requested the members of this august house to keep their mobile phones switched off...but the phones rang up—seven times: One music was titanic... Let there be some norms.”

Vice Chairman of Union Bank Muneer Kamal had said earlier that though Pakistan gained too much out of 9/11 it did suffer on one account—its negative image.

“Forget about (attracting) foreign investment. We cannot even have a cricket match in Karachi or Lahore,” he said making an obvious reference to postponement of international cricketing events after suicide car-bombing in Karachi earlier this year.

“The image of Pakistan in the outside world is a deterrent to investment...We have to live through this for another two to three years,” he told a questioner who had asked when the problem of negative image may be over.

He said local entrepreneurs ought to invest in education and physical and telecommunication infrastructure in the interior of Sindh to exploit its potentials. He said that it would not only directly benefit the Karachi-based businesses but would give the overall economy a real boost. He cited the success stories of Engro Chemical and Fauji Fertilizer—two industrial giants that thrived in Sindh against odds.

The chairman of International Chamber of Commerce (Pakistan) Tariq Rangoonwala called for social and cultural liberalization in and around the port city of Karachi to create investment- friendly environment. He also highlighted the need for creating special economic zones along the coastal areas of the province. “In 1980s it was the mainland China that did it,” he said. “Now the same pattern is being repeated in the Gulf countries.”

Rangoonwala also held red-tape responsible for impeding inflow of investment.

Chief Operating Officer of provincial committee on investment Muslim Abbasi suggested that the investors should be offered pre- insurance against political instability and riots, etc. He said this would make them feel more comfortable in making investment in Sindh and in other parts of Pakistan. He said the government should also make efforts to lure investment of those Kashmiris that live abroad (as a token of appreciation of what Pakistan is doing to support their cause.)

He admitted that law and order problem was very much relevant to a large extent but listed quite a number of countries that had attracted foreign investment despite poor law and order: Israel and India topped the list. He said the province of Sindh on its own Pakistan as a whole required to undertake a massive image building exercise to lure foreign and local investors.

He agreed with another speaker Nasim Beg that there should be a government -businessmen liaison committee on the pattern of CPLC to sort out the issues impeding investment.

Nasim Beg who is the CEO of Arif Habib Investment in his presentation identified the following deterrents to investment: poor law and order; corruption in establishment particularly in utility companies; weak writ of the government; non investment- friendly attitude of local government; delayed dispensation of justice or poor law enforcement.

He underlined the need for setting up commercial courts on the pattern of banking courts and revising tenancy laws to protect investors.

Chairman of Sindh Privatization Commission Syed Nasir Ali Shah Bokhari explained in detail what he called unwillingness of the bureaucracy to make the privatization process a success.

He cited half a dozen examples of how the bureaucracy was coming in the way of attracting investment through privatization. “They are not even willing to share information on what is available for privatization,” he remarked.

He said the Sindh Privatization Commission had privatized the Trauma Centre that was lying dormant since 1985 but unfortunately the government had still not handed its possession to the buyers.

“We do talk but we do not get serious,” he said pointing to the fact that technical hitches came in the way of developing tourism in Sindh along side coastal areas that could earn enough investment.

The chairman and Managing Director of the National Investment Trust Tariq Iqbal Khan highlighted the role his institution had been playing in developing a base of small investors.

“NIT is — and will remain an enabler. It collects small investment and will continue doing so...that money will then go into the stock market and eventually be used for industrial growth,” he said. The NIT chief said there was a need to calmly analyze the real reasons of the investors getting shy and then addressing the problems thus identified.

Managing Director of Shell, Farooq Rehmatullah, showed with the help of slides how the lack of road network was having an impact on existing businesses in Sindh and serving as a deterrent to further investment.

He said 70 percent of the road network of this province was in a poor state with the backlog of maintenance cost touching Rs 10 billion mark.

Rehmatullah shed light on some of the development plans of his company.

Resident Editor of Dawn Islamabad M. Ziauddin moderated the seminar.