LAHORE: Pakistan ranks 62nd in the foreign direct investment-friendly countries but it does not reflect its potential and available resources, necessitating a comprehensive strategy to overcome low local and foreign investment phenomenon.

“There is a dire need to promote economic vitality by strengthening private sector as internal dynamism has faded away due to an acute energy shortage, deteriorating law and order and political instability,” said Lahore Chamber of Commerce and Industry (LCCI) President Ejaz A. Mumtaz in a statement here on Wednesday.

Terming institutional fragility and the political instability the major factors in keeping foreign investors away, Mr Mumtaz said the LCCI was ready to help provide required boost to economic activities, a prerequisite to expedite local investment and attract foreign investors.

“Rising risk perception of investing in Pakistan is hitting hard the entire economy and needs to be tackled through a new policy approach by involving chambers of commerce in the country.

In the recent past, fall in the Foreign Direct Investment has adversely affected the country’s economic growth. The government should adopt prudent measures to attract the foreign investment so that the country comes out of lopsided interest of foreign investors,” he said.

Mr Mumtaz proposed that a special committee comprising members of parliament, presidents of chambers of commerce and industry and representatives of sector-specific associations should be formed to identify the solutions to attract foreign investment.

“The proposed committee should also be tasked with looking into the existing policy framework and if there is a need to redesign it the committee should immediately initiate work.

Key issues including power shortage and other vital factors should be addressed on a priority basis to improve the foreign investment condition to put the country on track of economic growth and development.

“At the same time the government should ensure that all institutions remain immune to any sort of undue interference as this will help improve quality of governance without which foreign investment cannot be attracted,” he said.

Published in Dawn, October 2nd , 2014