FIPP to attract over $5b investment a year


KARACHI: The federal government is poised to launch its first Foreign Investment Promotion Policy (FIPP) and aims to maintain the level of inflow of foreign investments above $5 billion annually, by offering fresh incentives to investors.
According to the draft of the FIPP, made available to Pakistan Today, the federal government had almost completed the process of consultation with both provincial governments and private sector stakeholders. It is hoped that the policy will be announced within the next few months.
The policy was to be announced by July 2010, but was delayed due to political crises and the poor security situation prevailing in the country. The FIPP is a part of the Investment Policy being framed for 2010-2015. Between 2006 and 2007, for the first time, Pakistan garnered more than $5 billion in
FDI (Foreign Direct Investment). This momentum was maintained in the following year, with investment levels exceeding expectations. However, more recently, foreign investment has withered in the face of the sharp rise in political instability and war on terror.
This policy will encompass three programmes: (1) Enhancement of Pakistan’s image as a destination for investment. (2) Promotion of investment projects within Pakistan internationally. (3) Provision of services to foreign investors in Pakistan.