Global recession may prove blessing in disguise for Pakistan

ISLAMABAD (APP) - The current global economic recession provides great opportunity to Pakistan for attracting investment as the country provides better chances of returns as compared to the Western and other countries of the world, Federal Minister for Investment Senator Waqar Ahmad Khan said.
"Due to financial recession, there is negative trend in returns all over the world but very positive in Pakistan. This trend has enabled Pakistan to emerge as strong profit provider in terms of returns," the federal minister for Investment told APP in a panel interview here Friday.
Senator Waqar said that Pakistan provides 35 to 40 percent profit returns besides offering a conducive atmosphere to invest in various sectors of economy.
He said that the investors are in search of safe and profitable markets and are afraid to invest in the countries facing financial recession, however, Pakistan was not directly hit by the recession, hence offering a promising opportunity for them.
Economic experts believe that although the increasing prices of oil and edible commodities at international market affected Pakistan negatively, however, it was not directly hit by the financial recession as the other countries experienced.
However, the investment minister stressed the need for taking comprehensive strategic measures to exploit this opportunity for the betterment of the country's sustainable economy.
He said that government realized this favourable situation and was engaged in preparing strategies and policies to attract more and more investment.
"The government has a vision to promote investment and that was why it has upgraded the Board of Investment into a full-fledged Ministry of Investment for facilitating and safeguarding investors' interests," he remarked.
He said that government would bring legislation through Parliament soon for the protection of investments for next ten years and would ensure continuation of investment policies to build investors' confidence.
In addition, a special task force, comprising officials from ministries of interior, defence, investment and finance, would be formed to protect investment and providing security to potential investors in the country.
He said that government was concentrating on good governance with an aim to facilitate the investors, saying Ministry of Investment would work as facilitator to link the investors and federal, provincial as well as district administrations for creating better investment atmosphere.
For providing a safety net to investors, the government would also provide insurance cover to the investments in the country to mitigate the risk of losses.
The government has also decided to establish a focal point at provincial level to guide the visiting investors saying that District Coordination Officers and District Police Officers would interact with them for proper guidance.
The ministry has also asked the relevant ministries to submit priority areas for investments to the ministry so that measures should be taken for investments in their respective areas of interest for sustainable economic growth.
He said that the investment ministry also aims to create investment desks at all the Pakistani banks abroad to provide immediate assistance and information to the investors regarding the investment opportunities and incentives in Pakistan.
The government is also organizing investment conferences and roundtables for the business communities abroad to highlight the investment friendly policies and opportunities for investors.
To a question, he said that investment of US$ 10 billion was expected during next year adding that the ministry aims to attract US$ 40-50 billion during next few years.
About the current investments, he said that Memorandum of Understanding (MoU) for $800 million project for developing drinking water supply pipeline from Tarbela Dam to Islamabad and Rawalpindi was signed with a Korean Companies recently.
He said that another MoU of $200 million for water desalination project in Karachi was signed with a French company saying that through this project 200 million gallons water would be provided to people of Karachi.
To a question about priority areas of investments, he said that the government envisages inviting investments in oil and gas, agriculture, dairy, water and power sectors.