ICCI for FDI diversification to export-oriented sectors for export-led growth

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ISLAMABAD, Dec 28 (APP): Islamabad Chamber of Commerce and Industry (ICCI) has called for reviewing country’s investment policies with particular focus to attract foreign direct investment in export-oriented sectors.

“This will help in enhancing value-added exports and paving way for export-led growth of the economy”, President ICCI Atif Ikram Sheikh said in a statement issued here.

He said the foreign direct investment in Pakistan has mostly been encouraged in power, telecom, chemicals, cement, auto and pharmaceuticals sectors which were not leading exporters.

He said countries like Singapore, China, Malaysia, Cambodia, Vietnam and others have promoted their exports by luring foreign investment in export-led sectors while Pakistan has lagged behind in technology advancement and value-added exports due to concentration of FDI inflow only in a few sectors of its economy.

Atif Ikram Sheikh said instead of focusing on FDI in certain lucrative sectors, there is a need to ensure that inward FDI should play more effective role in facilitating technology transfer to the country, access to newer and larger foreign markets, capital growth, innovation and human resource development.

He said State Bank’s  Annual Report 2014-15 have highlighted divestment and pullouts of foreign investment from various sectors of the economy including steel, cement, pharmaceutical, oil and gas in FY 2015 which was not a good sign for the economy.