ICCI for attracting domestic investment

ISLAMABAD (APP) - The Islamabad Chamber of Commerce and Industry (ICCI) on Saturday said that special emphasis should be placed on identifying the barriers that discourage investment in Pakistan while reliance should be on domestic investment to drive economy out of recession. "Domestic Investment is one of the major determinants of sustainable long-term economic growth but Pakistan's domestic challenges are turning investors off," Mahfooz Elahi, ICCI President said while addressing a federal investor's community here. He was reacting to the report that Pakistan's foreign direct investment was tumbling with a significant proportion every year. Mahfooz Elahi said that foreign direct investment's net inflows is less than 2pc of GDP while domestic investment's accounts more than 15pc of GDP, so govt should play its right cards to mobilize domestic investment that supports economic growth and sustainable development. The ICCI President said that more stable socio-economic and political environment will boost domestic investment over the long-run period and political environment must be more secure in order to attract higher levels of private investment. He also said, like in other regional countries, the government should maintain continuity of policies. Pakistan's fiscal and balance of payment situations and foreign exchange reserves position is under considerable strain and making the macroeconomic environment less conducive for investors, he said adding some drastic and far-reaching measures are needed to reduce the fiscal deficit on the one hand and to raise trade surplus and foreign exchange reserves on the other. The President said that there was a dire need to develop a close liaison with businesses, industries and chambers within the country to increase investment opportunities. He urged the government to announce attractive package to make Pakistan safe and profitable haven for both local and foreign investors who wish to explore and optimize the potential of the inexpensive labor force, real estate and vast consumer market.

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