ISLAMABAD, Dec 21: Board of Investment, in recent months, received various complaints regarding hurdles in the way of direct foreign investment (DFI) in various sectors particularly in the textile sector
and clothing sectors after the abolition of quota regime by end of the current month, officials said on Saturday.
The complaints were received from the local as well as foreign investors, the officials said Until the government take these procedural problems seriously and improve country's image abroad through media as well as diplomatic channel, attracting FDI would be very difficult.
According to the list of irritants compiled by the BoI, a copy of which was made available to Dawn, the hurdles included the image and perception of the country abroad, poor law and order and security situation in the country, lack of infrastructure- availability of gas, electricity and land- delays in the dispute settlement, high income tax rates-35 to 41 per cent-cumbersome visa approval procedures, company registration, environmental approval, registration with chamber of commerce and industry, approval for imports at reduced rates, multiple registration with employees old-age benefits institution, customs clearance for imports and exports.
The other irritants identified as registration of intellectual property rights, construction and building permits, boiler registration, labour registration, NOC in telecommunication sector, licence of travel agents, tour operators and hotel or restaurants inspection, pharmaceutical drug registration process, requirements of securities and exchange commission of Pakistan, filing of tax return-quarterly, six monthly, annual statement-and sales tax audit.
The investors are also facing problems in the areas of compliance with labour laws, review of foreign private investment (Promotion and Protection Act, 1976), social sector, sea port facilities, cargo handling, agriculture sector for foreign investment, tax on royalty and technical fee- 15 per cent sales tax on royalty and technical fee, requirement of power and gas as well as NOC from Wapda and KESC for captive power project, cost of access to financing, one window service-inter-ministerial coordination and inter-provincial coordination and policy and procedural issues.
On the other hand, under the Singapore issues, the WTO member countries have agreed to start negotiation on the trade facilitation. This was an area where Pakistan did not foresee much difficulty since the government has been doing considerable work in this area on its own.
"Our trade regime is now relatively very open and is constantly being made more facilitative as part of our own reform agenda," added the officials.
