By Our Correspondent
LAHORE – Federal Minister for Investment and Chairman of the Board of Investment (BOI) Qaiser Ahmed Sheikh has said that as a businessman himself, he understands the problems of of the private sector and their concerns. Bord of Investment is making all out efforts to promote domestic and foreign investment.
Read also: LCCI welcomes US suspension of tariff restrictions on Pakistan
He was speaking at the Lahore Chamber of Commerce and Industry. LCCI President Mian Abuzar Shad, Vice President Shahid Nazir Chaudhry, SAARC Chamber Vice President Mian Anjum Nisar, former LCCI Vice President Faheem-ur-Rehman Saigal and Executive Committee Members, all of whom also shared their views on Pakistan’s investment landscape.
Qaiser Ahmed Sheikh, while addressing the session, said that as a businessman himself, he understands the problems of the private sector and their concerns regarding investment and policy hurdles. He lamented the decline in Pakistan’s global standing, saying there was a time when countries like China learned from Pakistan, but today China’s exports have surged past $3.5 trillion while Pakistan’s remain around $32 billion. He noted that Pakistan possesses tremendous potential, but it needs to be unlocked through visionary reforms and facilitation of investors. He emphasized that bureaucratic red tape must be eliminated to ensure the smooth development of the business sector. He also outlined that the Board of Investment is actively promoting both domestic and foreign investment and informed the participants that industries operating in Special Economic Zones (SEZs) enjoy benefits such as zero duty on imported machinery and a 10-year income tax exemption, which the business community should take full advantage of.
LCCI President Mian Abuzar Shad, while welcoming the minister, stated that the Lahore Chamber considers investment to be the cornerstone of economic development. He acknowledged the BOI’s pivotal role in investment promotion and shared some positive economic indicators, including a significant decline in inflation to 0.7% in March 2025 and a rise in foreign exchange reserves to $15.7 billion. He added that remittances have increased by 32.5%, crossing the $24 billion mark and suggested that bringing the dollar down to Rs. 250 is within reach. The policy rate has dropped to 12% with hopes of reaching single digits soon. He also highlighted a 7.7% increase in exports between July and March, totaling $24.7 billion. However, he pointed out with concern that the investment-to-GDP ratio stands at a mere 13.1%, with private investment contributing just 8.7%, which is not sufficient for sustainable economic growth. He stressed that development is impossible without strengthening domestic investment and urged the BOI to focus more on attracting investment in hydropower and renewable energy. He also called for technology transfer in the mineral-rich sectors of Pakistan.
LCCI Vice President Shahid Nazir Chaudhry, in his address, underscored the urgent need to invest in local manufacturing of solar panels and said that the depreciation of the rupee and high gas tariffs are among the biggest challenges faced by the industrial sector. He noted that industries are burdened with high MDI charges and import duties, especially those that are currently non-operational. He further stated that Pakistan’s trade deficit reached $17.9 billion during the first nine months of the current fiscal year, while foreign direct investment stood at just $1.62 billion, showing that new investors are reluctant to enter Pakistan. He urged that the government must facilitate industries with affordable electricity, gas and concessional loans. He also proposed that Chinese industries should be encouraged to invest in Pakistan’s Special Economic Zones.
