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Islamabad [Pakistan]January 13 (ANI): Pakistan needs to change its macro policies to attract multinationals as it is not an investment-friendly regime, Islam Khabar reported.
Political instability, discontinuity in macroeconomic policies, terrorism, corruption and energy shortages among many other factors have traditionally hindered foreign investors from bringing funds into Pakistan.
Pakistan continues to be in turmoil, with political unrest, energy crises and natural disasters in the form of catastrophic floods hampering the country’s economic recovery.
In an increasingly globalized world, it is impossible to imagine any scenario of economic recovery or growth in developing countries without acknowledging the role of foreign investment, reports Islam Khabar.
Over the past two decades, Pakistan has attempted to implement several measures in favor of FDI. The country has also attempted broad structural reforms to attract multinational companies that could become a driver of economic growth and job creation in the country.
However, effective implementation of these measures remains slow due to grassroots problems in the country, including bureaucracy, bureaucracy, rampant corruption, misguided ideology, and terrorism. As a result, companies from developed countries have had difficulty increasing their investments in the country, reports Islam Khabar.
Companies from China are considered outliers because of their large investments in CPEC projects. Their limited success, however, is often attributed to Beijing’s strategic leverage over Pakistan and its policymakers.
Multinationals from other major countries that rely on Pakistan’s commitment to a rules-based order have often been frustrated by the approach of the agency tasked with boosting investment in the country. These institutions include the country’s central bank, the State Bank of Pakistan and various government ministries, Islam Khabar reported.
Many American companies operating in Pakistan experience it regularly by setting up their companies here or working with some local partners. These include Procter & Gamble, Oracle Services Pakistan, IBM Pakistan, FedEx (a Gerry Group company), Marriott Hotels, Troy Group of Companies (operating through Amanco Pakistan), Gray’s MacKenzie (a major KFC franchise in Pakistan) ) and other well-known enterprises and 3M Pakistan, etc.
The companies had to contact the SBP and other ministries over minor issues that caused frequent disruptions to their operations, Islam Khabar reported. (Arnie)
(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)
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