Page 18 - CMA Journal (Mar-Apr 2023)

Focus Section

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My recently found assurance fiscal discipline and monetary stability through sound
macroeconomic policies is vital for investors’ confidence
and hope is the appointment of and overall economic growth. Warren Buffett's quote
underscores the importance of patience and a strategic
approach to investment in Pakistan, emphasizing
Muhammad Aurangzeb, as Federal
long-term growth over short-term gains. Overcoming
Minister Finance & Revenue. The domestic constraints, such as security issues and
governance weaknesses, is key to maximizing the benefits
gentleman has delivered on all of FDI and achieving broader economic objectives.
accounts and has the most A concerted effort from government, businesses, and
stakeholders is necessary to transform Pakistan's
impressive portfolio for turning investment landscape, involving regulatory reforms,
infrastructure development, security enhancement, and
the situations “ economic stability maintenance to attract both domestic
and foreign investors, fostering sustainable economic
growth and prosperity.
This has been the consistent message advocating the
investment landscape. Pakistan is currently registering My recently found assurance and hope is the
appointment of Muhammad Aurangzeb, as Federal
stagnant FDI figures, with decreasing market volatility
pushing its strength of location and population to Minister Finance & Revenue. The gentleman has
irrelevant data for the regional economies. delivered on all accounts and has the most impressive
portfolio for turning the situations. Given long term
Warren Buffett, the legendary investor, and Chairman of policies, and space to devise stratagems, Pakistan's new
Berkshire Hathaway, once remarked, "The stock market is
economic team is competent to pave the way for
designed to transfer money from the Active to the significant advancements in attracting foreign direct
Patient." In the context of Pakistan, it underscores the investment (FDI).
significance of adopting a patient and strategic approach
to investment, focusing on long-term growth and 250
211.111
211.111
211.111
sustainability rather than short-term gains. 211.111
200 172.596
172.596
172.596
172.596
4
.
7
6
1 164.730
164.730
The Kingdom of Saudi Arabia, and the Peoples Republic 164.7300 3 150.112 141.953
150.112
150.112
150.112
141.953
141.953
141.953
131.374
131.172
131.172
131.172
131.374
131.374
126.818
126.818
126.818
122.461
122.461
of China, have both displayed individual, organic yet 150 126.818 116.763 122.461 131.374 131.172
122.461
116.763
116.763
116.763
83.250
dynamic approach towards economic progress. Both 100 83.250
83.250
83.250
have played into indigenous strengths, used technology 50
to beat the challenge and have come out as the leading
0
power hubs. Pakistan enjoys strong goodwill with both
countries but seems to have lost their trust in its -50
potential. The reasons begin and end with the lack of
-100
political will and incompetency in the people at the helm
-173.171
-173.171
-173.171
of affairs. While we know the problems, and sadly the -150 -173.171
solutions, we seem to have reached a stalemate. Listing -200
either would be repetitive and futile. The fact is that Mar '23 Apr '23 May '23 Jun '23 Jul '23 Aug '23 Sep '23 Oct '23 Nov '23 Dec '23 Jan '24 Feb '24
Pakistan, as a business hub, is not thriving. It is a company Foreign Investment: Direct Investment
of 240 million employees challenged with basic literacy
and skill development, with an elite senior management
In the present circumstances of economic volatility,
enjoying the profits as rewards, and that has no including inflationary pressures, fluctuating exchange
permanent or unified authority for decision making. rates, and unfavorable taxation, investors are justifiably
Establishing a consistent and predictable policy hesitant to commit capital, fearing potential losses due to
framework is essential to attract long-term investments, adverse economic conditions. I look at the declining
emphasizing the need for the governments to prioritize graph and then towards the new decision makers to help
continuity of policies, engage stakeholders in major the situation. The government must simplify and
reforms, and provide clear guidelines to foster a stable streamline regulatory procedures, implement online
investment environment. Infrastructure investment, platforms for regulatory approvals, remove bureaucratic
particularly in energy, transportation, and hurdles, and ensure transparency in decision-making, to
telecommunications, is crucial for economic growth, job expedite investment processes and enhance investors’
creation, and overall investment climate improvement. A confidence. The IMF should be the guideline for monetary
comprehensive approach to addressing security concerns, planning to ensure that there is no 24th run again.
involving law-enforcement, community engagement, and
About the Author: The writer is Pakistan's former Minister for
diplomacy, can mitigate risks for the investors. Maintaining
Investment. He can be reached at @MAzfarAhsan
16 ICMA’s Chartered Management Accountant, Mar-Apr 2024