New Delhi, July 9 (IANS) Pakistan’s chaotic governance, policy inconsistency and political instability continue to deter foreign investment despite repeated overseas investment pitches by the country’s leadership, according to a report.

A report published in Dawn highlighted that investor confidence depends far more on improving governance and creating a stable business environment than on high-profile appearances at international forums.

“Chaotic governance and inconsistent policies have been a major impediment in the way of any investment coming to the country,” the report said.

It added that Pakistan had participated in several investment conferences in recent years without witnessing any meaningful increase in foreign direct investment (FDI).

According to the report, Pakistan’s annual FDI has declined sharply from a peak of around $5-6 billion in 2007-08 to as low as $500 million in some years.

The report also questioned repeated official claims of massive foreign investment potential, including earlier projections of $100 billion in inflows and announcements of large investments from Gulf countries, saying many of these commitments had failed to materialise.

It cited the example of Saudi business delegations that visited Pakistan to explore investment opportunities but reportedly found few viable projects because of institutional and administrative shortcomings.

The report further pointed to the steady exit of several multinational companies from Pakistan in recent years, attributing the trend to high business costs, policy uncertainty, frequent regulatory changes and unreliable digital infrastructure.

It said high corporate taxes and constantly changing policies were among the key reasons companies had wound up operations in the country.

The report also referred to warnings by the Pakistan Business Council that prolonged internet disruptions had prompted multinational firms to reconsider their presence in Pakistan.

–IANS

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