More steps to be taken to attract FDI
RECORDER REPORT
KARACHI (March 30 2004): Federal Finance Minister Shaukat Aziz said in Karachi on Monday that the government would take more steps to attract more foreign direct investment (FDI) into the country.
Addressing the Overseas Investors Chamber of Commerce and Industry (OICCI), he said that the flow of FDI in Pakistan has been around 600 million dollars. This, he added, should be seen in the context of the general trend of FDI in the region, which has been low.
He asked the OICCI to suggest ways and means to check the menace of under-invoicing.
The Chamber should also jointly address the issue of preferential Trade Agreement and Forced Trade Agreements and enter into dialogue with the Government, he added.
Shaukat gave figures for seven months of the current fiscal year. He said: "Water availability and fertiliser offtake have improved considerably, as a result of which growth in the agricultural sector is as per target of 4.3 percent per annum. Cotton, wheat, rice and sugarcane crops have all shown good gains.
This will result in Rs 65 billion increase in income in the rural areas, primarily because of the increase in cotton support price."
Manufacturing sector also has been very buoyant and has grown at the rate of 15 percent per annum. As a result of all this, the GDP is likely to grow by 5.5 to 6.0 percent per annum.
Inflation has been contained to about 4 percent. There has also been manifold increase in credit availability to private sector. Market capitalisation has also improved and the PE ratio is around 12, he said.
Inward remittances are expected to be around $3.5 billion. The flow of FDI into Pakistan has been around $ 600 million.
This has to be seen in the context of the general trend of FDI in the region, which has been low, he added.
The minister agreed with the chamber proposal that more needs to be done to improve the overseas perception of Pakistan.
In his address of welcome, OICCI President Farooq Rahmatullah acknowledged the tremendous achievements in respect of the economic reforms agenda. He also pointed out measures that are needed to make Pakistan more investor-friendly.
Copyright Business Recorder, 2004
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