Pakistan needs to change macro-level policy to attract multinational companies as it is not known to be an investment-friendly regime, reported Islam Khabar.
A multitude of factors including political instability, discontinuity of macroeconomic policy, terrorism, corruption, and energy shortages, have traditionally kept foreign investors from bringing money into Pakistan.
The ongoing turbulence in Pakistan constituting political upheaval, energy crisis, and natural disasters in the form of massive floods has pushed back the economic revival of the country.
In an increasingly globalized world, any scenario of economic recovery or growth of a developing country cannot be visualized without acknowledging the role of foreign investment, reported Islam Khabar.
During the past two decades, Pakistan tried to implement several FDI-friendly measures. The country also attempted wide-ranging structural reforms to attract multinationals which could become the enablers of economic growth and job creation in the country.
However, effective implementation of such measures remained sluggish due to ground-level problems in the country including red-tapism, bureaucratic lethargy, rampant corruption, misguided ideology, and terrorism. Resultantly, corporations from developed countries were seen struggling to grow their investment in the country, reported Islam Khabar.
The companies from China are seen as outliers on the back of their substantial investment in CPEC projects. However, the limited success achieved by them is often attributed to the strategic clout Beijing enjoys over Pakistan and its policymakers.
Multinationals from other major countries banking upon a rule-based order promised by Pakistan are often disappointed by the approach of the institutions responsible for growing investment in the country. These institutions include the country's central bank, the State Bank of Pakistan and various ministries and departments of the government, reported Islam Khabar.
Many corporations from the US which are operating in Pakistan by establishing a company here or in collaboration with some local partners get to experience it frequently. These include some big names like Proctor and Gamble, Oracle services Pakistan, IBM Pakistan, FedEx (Gerry's Group of Companies), Marriot Hotels, Troy Group Inc. (operating through Amanco Pakistan), Gray Mackenzie Restaurant (master franchise of KFC in Pakistan) and 3M Pakistan, etc.
These companies have to approach SBP and other departments for minor problems which lead to frequent disruptions in their operations, reported Islam Khabar.
( With inputs from ANI )
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