The Lahore Chamber of Commerce and Industry (LCCI) appealed to the government to take note of the constant decline in Foreign Direct Investment (FDI).
“Energy crisis, lack of transparency, law and order situation have been the major factors resulted in FDI fall by 67 percent to $87 million during July-September 2012-13 against $263 million the same period last year,” LCCI President Farooq Iftikhar said in a statement on Wednesday.
Reacting to the sharp decline in the FDI, he said that increased risk factor about investing into Pakistan was hurting the entire economy and needed to be tackled through a methodical and visionary policy approach by involving major chambers of commerce of the country.
He feared the fall in FDI was likely to adversely affect the country’s economic growth therefore the government should adopt remedial measures to reverse the trend.
“The FDI is one of the fastest and most successful ways for poor nations to develop and increase their per capita income. It also provides foreign capital and funds besides enhancement in skills, technology and creates more job opportunities. The lethargic government response to deal with aggravating energy crisis is also affecting adversely the local investment scenario besides sending negative signal to potential foreign investors,” said Iftikhar.
The LCCI president proposed constitution of a special committee comprising parliamentarians, presidents of chambers of commerce and industry and representatives of other trade and industrial associations to identify ways and means to attract foreign investment by looking into the existing policy framework and if there was a need to redesign them.
He said key issues including power shortage, poor infrastructure, law and order situation and other vital factors, should be addressed on priority basis to improve the bleak foreign investment condition to put the country on track of economic growth and development.