ISLAMABAD, April 19: President General Pervez Musharraf on Saturday urged the Organization of Islamic Countries to seriously take into account the fast developing situation in the world with a view to effectively guarding their political and economic interests.
“Now is the time when the Muslim Ummah will have to work seriously to protect its political and economic interests,” he said, hoping that the next OIC summit to be held in Malaysia later this year would chalk out a comprehensive strategy to deal with the issue.
Inaugurating a two-day OIC international conference on investment and privatization, jointly organized by the Board of Investment and the Islamic Chamber of Commerce and Industry, the president tried to dispel the impression that Pakistan was not a safe place for foreign investment.
“Foreign investors were thinking that Pakistan was a violent country with bullets flying and bombs exploding, but I would ask them to see the ground realities for themselves by visiting the country,” he said, regretting that wrong travel advisories were issued by some countries to their investors and citizens.
The president, however, pointed out that he would be honest to say that for some foreign investors, there were issues of security which were being removed by the government. “But generally there is a negative perception about Pakistan which needs to be removed.”
Nevertheless, he said, the focus of Pakistan on attracting foreign investment was timely. There was continuity in policies, and foreign investors could own 100 per cent equity and repatriate their entire profit without any problem. “We are no more in the debt-and-investment dilemma and things are pretty attractive for foreign investors.”
Gen Musharraf said the government was spending Rs134 billion on the Public Sector Development Programme during 2002-03 which was a record in the country’s history. He said for the first time, Pakistan would cross $10 billion mark in exports by June 30 this year.
The president particularly asked the overseas Pakistanis to invest more in their country so that economic indicators could be further improved.
He said that bodies like Security and Exchange Commission of Pakistan, National Electric Power Regulatory Authority and Oil and Gas Regulatory Authority were ensuring transparency in their fields.
Gen Musharraf pointed out that export processing zones were open for investment by foreigners. Pakistan, he said, has signed investment protection agreements with 43 countries and more such agreements were being signed to ensure the protection of foreign investment in the country. There was an effective dispute resolution mechanism available to settle controversial issues.
He said Pakistan received over $500 million foreign investment during the first nine months of the current financial year. He said at the end of 2002-03, the government was expecting to have $1 billion Foreign Direct Investment. “But for a country like Pakistan $1 billion investment is not adequate and needs to be 100 per cent increased”.
The president said there were complaints of red-tapism which were being removed by the elected government. “I assure you that all the genuine problems of the investors will be resolved.”
However, the president said, he believed that no foreign investor would come to Pakistan unless local investors invest in their country. “We will remain committed and facilitate all kinds of investment in the country,” he said, adding that tax policies had been restructured and discretionary powers of tax officials withdrawn to help investors and businessmen.
The government, he said, was pursing a policy of de- regulation, privatization and liberalization, and “we will not endure the fiscal burden of public sector corporation, therefore there is going to be full-scale privatization”.
Earlier, Investment and Privatization Minister Dr Hafeez Shaikh and Secretary-General Islamic Chamber of Commerce and Industry Aqeel A. Al-Jaseem spoke.
