FDI registers upward trend in Pakistan owing to new policies, conducive investment environment: Chinese Scholar

BEIJING, May 14 (APP)::An eminent Chinese scholar said on Thursday that a large increase in the foreign direct investment in Pakistan was a result of a series of new policies announced by the government as well as the continuous improvement in the investment environment in recent years.

Despite the huge impact of the new coronavirus epidemic on Pakistan’s economy, the country’s attraction of foreign direct investment continued to rise.

The latest data from the National Bank of Pakistan (SBP) shows that in the first nine months of this fiscal year, Pakistan received a net inflow of foreign direct investment (FDI) of US $ 2.148 billion, a year-on-year increase of 137%.

Cheng Xizhong, a distinguished professor at Southwest University of Political Science and Law, believes that Pakistan’s attracting a large increase in foreign direct investment is indeed a good thing.

This shows that Pakistan has announced a series of new policies in recent years, taking measures to continuously improve the investment environment and encouraging foreign investment, which is having a positive effect.

“But I think the most fundamental thing is that China-Pakistan Economic Corridor has made positive progress. In particular, China and Pakistan have a clear idea on the next step of the corridor construction, and the two sides are fully promoting the construction of 10 special economic zones.

Foreign investors see the prospects for Pakistan’s economic development and recognize that Pakistan is an investment market with great potential,” Cheng Xizhong added.

He said that Chinese investment in Pakistan can be divided into two categories. “One type is infrastructure projects such as energy and transportation. These projects have huge investments, mainly invested by Chinese state-owned enterprises. The other type is small and medium-sized enterprises investing in Pakistan.

Chinese small and medium-sized enterprises are very active and are an important force for foreign investment. They will invest wherever they can make money, and wherever the investment environment is good, they will invest in a wide range of fields, mainly agriculture, food processing, logistics, security, information technology, etc.”

Cheng Xizhong said, now due to the new coronavirus epidemic, flights between China and Pakistan have been temporarily suspended, but the Chinese have a special friendly feeling towards Pakistan.

As epidemic is getting worse in Pakistan, from Beijing to other places, government departments, civil organizations, enterprises, and universities are waiting for donating medical supplies to Pakistan.