IT is an evergreen debate to shortlist ways to invite global investment and to drive economic growth in the country. The government has rightly moved to improve the ease of doing business, but the direction of the move remains open to discussion.

Global capital flow requires a stable political climate which can be realised only by ensuring internal peace. Investors do not want their money tied up in places where there is uncertainty. Further-more, foreign direct investment (FDI) is expected to move towards countries welcoming innovation in sectors that have potential for high growth, such as infor- mation technology (IT), renewable energy and others.

As a response to the worldwide trend of cleaner environment coupled with digital revolution, it is necessary for countries to position themselves strate- gically as champions of these industries. To attract visionary businesses, govern- ments may point out the opportunities available within such sectors domes-tically, and provide them all the support they need.

Among the strategies is the estab-lishment of special economic zones that are likely to tilt the scales favourably for foreign investors. Such areas with ultramodern infrastructure coupled with tax holidays can draw international companies wishing to establish firms in Pakistan.

Besides making laws more investor-friendly and cutting red tape, it is truly important to combat graft and inefficiency within the bureaucracy. Potential foreign investors tend to shy away from markets where corruption is rampant and too many formalities are required to get an approval. Therefore, Pakistan must create a truely enabling environment for business ventures. and simplify the procedures with respect to public service delivery systems in order to attract FDI.

Muhammad Islah Uddin
Karachi

Published in Dawn, June 17th, 2024