PRMI reforms to boost FDI, economic growth in Pakistan

November 27, 2023 (MLN); Pakistan Regulatory Modernization Initiatives (PRMI) was a major plan of the Board of Investment (BOI) for the modernization and regulation of local businesses to enhance foreign direct investment (FDI) in the country, APP reported.

Implementation of these reforms, initiated by BOI, was part of the broader strategy of the government aimed at improving productivity and enhancing exports to achieve the objective of sustainable economic growth in the country, Federal Secretary, Board of Investment (BOI), Muhammad Sohail Rajput told APP.

The Secretary BOI said the main objective of the PRMI reforms strategy was to improve the entry and operation environment for business, focusing on the simplification and automation of the regulatory framework at all three government levels including federal, provincial, and district levels.

He said the vital success indicator of the initiative would be an increase in the overall private sector and foreign direct investment level without compromising the effectiveness of the various regulatory regimes.

Sohail Rajput said enabling a business environment played a pivotal role in attracting domestic and foreign investment.

He said all over the world, the emphasis was on improving the business climate.

Replying to a question, he said the World Bank’s coming, Ease of Doing Business (EODB) report 2021-22 to be issued in December this year, which was expected to further improve Pakistan’s ranking below 100.

“Improving Pakistan’s ‘Ease of Doing Business Ranking’ will boost foreign investment in the country”, he said.

The Secretary said higher rankings in the World Bank Ease of Doing Business (EODB) index indicated better regulations for businesses and stronger protections of their rights.

An environment where new entrants with drive and innovative ideas could get started in business, she said adding, areas where productive firms could invest, expand, and create new jobs was our prime focus.

He stated that the principles of the policy include reducing processes and the cost of doing business, facilitating ease of doing business through the creation of industrial clusters and Special Economic Zones, and establishing linkages between trades, industrial, and monetary policies for greater convergence.

Foreign investments are protected under the Foreign Investment (Promotion and Protection) Act, 2022," he added.

The Secretary BOI emphasized the importance of open dialogue and assured the government of its dedication to listening to the recommendations provided by the business community in shaping investment policies, budget decisions, tax reforms, and other vital aspects of the economy.

The Board of Investment (BOI) was highlighted as a key facilitator, serving as a focal point of contact for existing and prospective investors, both domestic and foreign.

The Secretary stressed Pakistan's open and liberal investment regime, designed to attract FDI through liberalization, de-regulation, privatization, and facilitation.

In addition to these initiatives, the BOI has conducted Comprehensive Sector Studies of Priority Sectors such as Food Processing, Automotive, IT, Textiles, Logistics, and Housing and Construction.

These studies provide valuable insights into opportunities, policies, and incentives offered by the Government of Pakistan, encouraging companies to explore investment prospects in these sectors, he addressed.

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