KARACHI: Federal Minister for the Board of Investment Qaiser Ahmed Sheikh on Saturday said Pakistan must remove key obstacles, including high energy tariffs, delays in sales tax refunds and excessive regulation, to attract greater domestic and foreign investment.

Addressing a meeting at the Korangi Association of Trade and Industry (KATI), he said Pakistan’s business community was dynamic and capable, but sustained investment depended on improving the ease of doing business.

The minister said the government’s priority was to boost exports, adding that sustainable export growth required special attention to Karachi, the country’s commercial hub.

According to a KATI press release, Mr Sheikh announced that a 6,000-acre Special Economic Zone (SEZ) would be established at Pakistan Steel Mills, where investors would receive incentives, including a 10-year zero-duty regime.

BoI minister urges cuts in energy tariffs, faster tax refunds and fewer regulatory hurdles

Referring to regional economic developments, he said China had sustained double-digit economic growth for three decades, while policy decisions had shaped the economic trajectories of both Pakistan and India.

He regretted that Pakistan had failed to effectively implement the Charter of Economy and the Charter of Democracy, undermining long-term economic stability.

Mr Sheikh said the Special Investment Facilitation Council (SIFC) was playing an effective role in promoting investment and disclosed that the government had decided to merge it with the BoI to further streamline investment facilitation.

He said the latest federal budget had abolished the super tax on exporters, although high energy costs remained a serious concern.

He added that Pakistan had secured IMF approval for the SEZs after extensive negotiations and had signed several investment agreements during a visit to Beijing six months ago.

The minister also said progress had been made on memorandums of understanding with Maersk Line and Abu Dhabi-based partners, and urged Pakistani companies to pursue joint ventures with leading international firms.

Earlier, KATI President Muhammad Ikram Rajput said industries were facing a severe energy crisis, with many manufacturing units already shut down and fresh industrial investment becoming increasingly difficult.

He said high energy tariffs, inconsistent policies, rising business costs, a complex tax regime, inadequate export incentives and poor infrastructure in industrial areas were eroding Pakistan’s manufacturing capacity and global competitiveness.

Mr Rajput warned that meaningful new investment would remain elusive unless the sector’s core issues were addressed. He called for an effective one-window operation enabling investors to complete all regulatory requirements through a single platform.

He also urged the government to align industrial energy tariffs with those of regional competitors, adopt a stable long-term industrial policy, expand export incentives, ensure timely tax refunds and allocate dedicated resources to improve infrastructure in industrial zones, particularly the Korangi Industrial Area.

Mr Rajput said the Board of Investment should serve as an effective coordinating body between federal and provincial institutions to remove unnecessary bureaucratic hurdles and simplify regulatory procedures.

KATI Deputy Patron-in-Chief Zubair Chhaya said many young people were seeking employment abroad, while investors remained willing to invest in Pakistan if provided with a stable and business-friendly environment.

Published in Dawn, July 5th, 2026