A distinguishing feature of the era of globalization is crossborder
flows of foreign direct investment (FDI) and creation of
production networks by multinational companies. During last
decades investment liberalization has been the strongest driver
of growth, giving a significant boost to economies in developed
and developing countries. The global integration of economies
and related gains is compelling. Around the world countries are
adopting liberalized policies to attract FDI.
The revision of Investment Policy has been done keeping in view
the global investment trends, regional trends and experiences,
Pakistan investment data/ flows over time and present day
Goal of Investment Policy 2013-17
The goal of Investment Policy 2013 is to address and adjust
economic priorities in the face of changing global scenario of
economic slowdown coupled with domestic difficulties of power
outages and continued pressure on economy due to war on
terror. It is an endeavor to address the changed economic
realities and to achieve the targets given in National Policy
Document, Vision 2030.
The Policy will be instrumental to achieve progressive increase
in net FDI inflows of US $ 2 billion in the first year then growing by
about 25% in subsequent years taking it to US $ 2.5 billion in
2014, $ 2.75 in 2015 , $ 3.25 in 2016 and $ 4 billion in 2017 and
thereafter at least $5.5 billion per year.
Assuming average annual GDP growth of 5%, the FDI stock
would account for 20% of GDP, which is close to the current
The Policy has been designed to provide a comprehensive
framework for creating a conducive business environment for
the attraction of FDI. For implementation of the policy, FDI
Strategy for Pakistan, 2013-2017, outlining a detailed plan for
structuring the platforms has been dovetailed with it.
The Policy 2013 is supported by FDI Strategy for 5-year (2013-
2017), outlining enhanced facilitation procedures and role of BOI
Following basic principles provide theme of the Policy
a) Reducing the cost of doing business in Pakistan,
b) Reducing the processes of doing business,
c) Ease of doing business with creation of industrial clusters
and Special Economic Zones,
d) Linkages of trade, industrial and monetary policies for
(a) Reducing the cost of doing business in Pakistan
To facilitate market entry of Small and Medium Sized
Enterprises (SMEs) steps have been taken to reduce the cost
of doing business (money and time) SBP and SECP have
removed equity caps on Banking and non-banking financial
BOI has under taken an incremental process aiming at to
reduce cost of doing business. Investment opportunities and
information vital to start business in Pakistan and online visa
registration has been introduced.
(b) Reducing the processes of doing business (one-window
BOI is moving towards one-window operations. The aim is to
offer constructive policy parameters for removing
unnecessary regulations (deregulation) and minimizing the
cost to business by necessary regulations (streamlining).
Creation of Special Economic Zones (SEZs) is a step towards
(c) Ease of doing businesses with creation of industrial
clusters and Special Economic Zones (SEZs)
World over, SEZ has contributed towards national economies.
The phenomenal economic development in the neighboring
countries is motivating. Introduction of industrial
clusterization with promulgation of SEZ Act 2012, BOI has
endeavored to establish forward and backward linkages in
the market with supply chain availability. Adequate business
infrastructure coupled with BOI one window facilitation
services will make doing business easy and more profitable.
(d) Linkages of trade, industrial and monetary policies for
Linkages of macro and micro economic policies will bring all
stake holders: Line Ministries, Provincial Governments,
Regulators and other relevant Departments in unison for
greater convergence on important nation public policy
agenda. This will enhance transparency, predictability and
consistency in the system.