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Addressing the preliminary session of Overseas Investment conference Mr.
Zahid Hamid Federal Minister for Privatisation & Investment said that Pakistan
was all set to make new record as regard to Foreign Direct Investment (FDI) in
Financial Year 2006-07.
Giving details of the achievements Mr. Zahid Hamid said that Pakistan’s
investment friendly policies have yielded record results as witnessed during
the past FY 2006, which touched the record level of US $ 3.9 billion and this
accelerating trend has also been witnessed during the first half of the
current fiscal year 2006-07 by setting new record of FDI till December 2006 as
close to US $ 3.5 billion, which was going to increase further in coming half,
heading to set another new record. Pakistan has comprehensive and broad based
Privatisation Program, which provided exciting and attractive opportunities
and PC Ordinance 2000 has given statuary cover to the whole process, he added.
He informed the participants that liberal investment policy included 100 %
foreign equity in all economic sectors, with attractive incentives like
remittances of capital, profits, royalty, technical and franchise fees without
obtaining permission from the government. The foreign investment was fully
protected under Foreign Private Investment (Promotion & Protection) Act 1976
and Protection of Economic Reforms Act 1992, he stated.
He further stated that the continuity and consistency was the hallmark of the
government. The privatisation of public sectors entities has confined the
government’s role to policy making, good governance and has foster competition
and increased efficiency and revenues. Exciting investment opportunities in an
environment of level playing field for both local and foreign investors,
effective regulatory framework with liberal policies have made Pakistan an
attractive destination for investment, which has also given boost to the
investors confidence, he added.
Giving an overview of Pakistan’s economy and the salient features of
achievements as a result of the economic reforms, Mr. Zahid Hamid said that
Pakistan’s GDP growth exceeding 7 %, which was second to Indonesia and Turkey.
Three pillars of Pakistan’s economy deregulation, liberalization and
privatisation have yielded encouraging results. These major economic reforms
have been termed as role model in the World Economic Forum’s discussions while
IFC and World Bank has declared Pakistan as the top reformer in the South
Asian Region and 10th in the World in a report titled, “Doing Business in
2006: South Asian Countries Pickup Reform Pace”, he said.
The Minister informed that in FY 2000 the public debt was 96 %, which has
declined to 54 % in FY 2006, Export growth has accelerated to US $ 16.5
billion in FY 2006, which was US $ 8.5 billion in FY 2000, the Equity market
was out performing with market capitalization to the tune of around US $ 50
billion.
He urged the overseas Pakistanis to invest in Pakistan to respond to the call
of the motherland as this land has given them identity, of which we all were
proud and everybody among us was determined to serve the nation and country to
rebuild Pakistan with a sense of dedication.