August 26, 2016
President Pakistan Businessmen and Intellectuals Forum (PBIF), President AKIA, Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister Mian Zahid Hussain on Friday said fall in FDI from China should be considered as a warning sign.
The development should be taken very seriously as future of Pakistan is linked to the China-Pakistan Economic Corridor (CPEC), he said.
Mian Zahid Hussain said that after committing to invest 46 billion dollars in Pakistan China invested 600 million dollars last year but the FDI fell to 12.9 million dollars in the current fiscal which is disturbing.
Government should remove all the hurdles that can frustrate Chinese government or companies which will pave the way for timely completion of the game changer project, he demanded.
He said that the lack of interest on the part of Chinese and its impact on CPEC and Pakistan should be studied in detail.
The business leader also expressed concern on falling exports, investment and remittances. He said that imports have registered an increase whereas exports have taken a hit.
Textile exports dropped by four percent which has not only raised concerns in Pakistan but an international credit rating agency has also commented on that, he said.
He said that flight of capital has always remained more that the foreign investment as Pakistan has never emerged as an investment destination for the foreigners.
SBP has admitted that Pakistani are sending almost two billion dollars abroad annually while the amount send illegally is far more than that, he informed.
Mian Zahid said that foreign investment is falling and it is limited to telecom, energy and some other sector which needs diversification.