ISLAMABAD: A delegation of the World Bank Group’s International Finance Cooperation (IFC) called on Adviser to Prime Minister on Commerce Razak Dawood on Friday to deliberate upon the issues pertaining to Pakistan’s manufacturing-cum-export sectors.
The delegation was headed by IFC Asia and Pacific Director (Manufacturing, Agribusinesses & Services) Rana Karadshseh-Haddad.
“Pakistan remains the top-most priority of IFC in terms of the development of agribusiness and services’ sectors,” the IFC director stated, adding that IFC has undertaken various projects to attract investment in these areas.
“In this regard, IFC is providing technical and financial advisory services to the public and private sector by assisting local and foreign companies to venture into priority sectors,” Karadshseh-Haddad maintained.
The PM’s adviser on the occasion highlighted the “huge business potential” in the food processing, power, textile, leather and agriculture sectors of Pakistan. “These sectors remained unexploited owing to lack of value addition in their production,” he added.
Dawood emphasised the need to attract investment in the aforementioned sectors and urged IFC to provide necessary assistance to public and private sector companies.
He informed the delegation that prominent businesses around the world have, off late, shown a great deal of interest in making investments in Pakistan. “Leading companies, including PepsiCO and Cargill, have already started to invest in Pakistan’s food processing businesses.”
He said Pakistan has recently launched a programme titled ‘Regulatory Guillotine’ to ensure ease the business regulations. Through this programme, two to three regulations are removed every month in order to facilitate the business community, he added.
The adviser further informed the delegation regarding investment opportunities in the technology upgradation of the entire textile value chain, as “textile manufacturers are using very old technology which is eroding their competitiveness in the global textile market”.
He said the government has taken a strategic decision to increase the share of renewable energy from 4pc to at least 20pc in the total energy mix of the country. “This will offer massive investment opportunities in the power sector.”
Dawood urged IFC to aid Pakistan for better allocation and utilisation of resources so that the country’s economy could stabilise.
The IFC director assured complete cooperation and assistance to ensure value addition in the priority sectors as highlighted by the PM’s adviser.
IFC, including other arms of world Bank has been extending assistance, financial as well as advisory, to Pakistan through Pakistani banks and financial institutions, but due to lack of transparency on the part of various organs of Pakistan economy, the benefit to the overall economy remained very marginal. Rather many Pakistani banks /financial institutions became bankrupt resulting their closure. Therefore, care must be taken by the new managers of Pakistan economic affairs that that blunder may not be repeated and financial assistance /loaning be extended to competent and fair companies without involving political expediencies. If this is complied with in its right spirit, country will progress by leaps and bounds.