- MoI, BoI fail to establish business friendly environment, with monetary inflows on a decline and foreign companies remaining reluctant in investing in Pakistan
- Foreign companies’ officials forced to pay ‘commission’ ranging between Rs 40,000 to Rs 200,000 to secure a single visa
Prime Minister Nawaz Sharif has spent billions of rupees for conducting foreign trips in a bid to attract foreign investment to Pakistan, however, a lot of good work is facing challenges due to unnecessary delays in visa processing, bureaucratic hurdles at the Board of Investment (BoI), graft-seeking visa agents, corruption and malpractices at the lower ranks of bureaucracy in Ministry of Interior (MoI) and Customs.
Falling victim to graft, foreign companies have to pay heavily for early visa processing.
A source in a foreign company told Pakistan Today that the company was suffering badly due to the visa delays as visa agents seek Rs 40,000 to Rs 200,000 as ‘commission’ to accelerate the visa process.
“Since we are foreigners, everyone we meet whether in the government or any agent to get the visas, they seek graft. Even if we pay their commission, it takes at least two months to get visas for our employees,” said an official in a leading Chinese company.
The official said that they faced problems in MoI, BoI and Customs which only adds to their work. “Since we have no locals to help us get through to the high-ranking officials, we have to deal with agents and all companies have to pay heavily to these agents to avoid diplomatic glitches,” the official added.
The official said that each visa seeker has to wait at least for two to four months to get visa.
While talking to Pakistan Today, Zahid Amin, a consultant for an international NGO and the CEO of Impassion Media, confirmed that the foreign investors and tourists had to face such problems in getting visas due to faulty policies of the government.
“Recently, a Malaysian couple visited Pakistan to invest here. They told me that they wanted to get visa for visiting Pakistan and for this purpose, they visited the Pakistani high commission website to apply for the visa. However, they were shocked to see a travel warning appearing on our website, asking foreigners not to visit Pakistan due to threats to foreigners,” said Amin.
He added that the warning sent a very negative signal as its drafting was also very damaging and sent a very wrong signal to the world.
“I think there is a need to overhaul in the bureaucratic setup. There is no coherence in our policies as visa processing has become a very difficult job for foreigners. Suspicions regarding visa applications for foreigners have made the visa process much complicated which needs to be reviewed,” he said.
“There is no information why the applications are being delayed. No tracking system is in place for visa applications and the applicants have no clue where their files have stuck. No proper guidance is available on filing the visa applications. If we are to open our doors for business, we need to facilitate them,” he said, adding that no negative message should be conveyed even if the authorities concerned do not want to issue a visa.
Officials of foreign companies working in Pakistan have revealed that the visa problems are not limited to western companies.
Even the owners of Chinese investment companies, who have queued up to invest heavily in Pakistan, under the strategic partnership between both the friendly neighbours, have to pay between Rs 50,000 and Rs 200,000 per visa.
China tops the foreign direct investment (FDI) chart but the investors face low priority facilitation while foreign investors as a whole decry redtapism in MoI, BoI and Customs Department.
BOI FAILS, LOW FDI:
Moreover, according to the statistics provided by State Bank of Pakistan (SBP), the BoI has miserably failed to live up to its plans of improving business climate in the country. Perhaps, the same challenges have led to the government’s failure in attracting investors – a fact being reflected in low FDI.
According to latest FDI numbers released by the SBP, Pakistan recorded $ 1.75 billion inflow while $ 1.14 billion was outflow– leaving the net investment at $ 6.15 million.
Out of the total FDI, a massive investment inflow came from China as the record inflow recorded was $ 885 million. United Arab Emirates was the second biggest investor with $ 154 million on the chart while investments from other countries including United States, UK, Switzerland and Hong Kong have dropped substantially.
The net FDI outflows from Saudi Arabia have worsened over the last year, whereas all that hullabaloo over Pak-Turkey brotherliness has also not produced results as yet.
Moreover, while the number of gross FDI outflow is still smaller than gross FDI inflow, the growth in outflow has been faster than the growth in gross inflows.
The central bank data shows that gross inflows in 8M FY15 rose by 26 percent year-on-year to $ 1,756 million, whereas gross outflows jumped 52 percent year-on-year to $ 1,136 million.
MOI CLEARS STANCE:
A spokesman for Interior Minister Chaudhry Nisar Ali Khan told Pakistan Today that the minister, soon after taking charge, had addressed the matter in view of such reports, making it clear to the ministry’s officers that no corrupt element would be allowed to defame the country.
“The minister has a zero-tolerance policy on corruption in the ministry. As far as the matter of visa for foreigners is concerned, the minister will can inquire if evidence is produced,” he added.
