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Two int’l investment moots postponed owing to terror wave - LahoreEstate - 10-18-2009 05:15 AM
By Tanveer Ahmed
KARACHI: The latest string of terrorist activities – more lethal in its nature – has cast further black shadows on already fragile and struggling business and investment outlook of the country.
Although, both local and foreign investors were scary of the security situation, the postponement of two investment conferences in Pakistan proved that foreign delegates are afraid of visiting Pakistan.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the apex trade body of the country, has put off International Private Sector Investment Conference / Business Forum and Exhibition for an indefinite period of time. The event was scheduled for October 23-25 in Islamabad.
This was followed by cancellation of “Pakistan & Regional Energy Conference 2009” organised by Petroleum Institute of Pakistan.
Though, FPCCI cited “certain unavoidable circumstances” in its statement for the postponement of its event but one can clearly understands what the unavoidable circumstances means in the current situation.
PIP minced no word by declaring that prevailing security threats, escalating law & order situation and consequent to the recent spate of terrorist attack across the country has led to cancellation of the event.
“Who will invest in the present situation when death and destruction becomes order of the day and even the headquarter of armed forces are not safe,” representatives of business associations remarked when contacted to seek their views on the current situation and postponement of business and investment conferences in the country.
“What can one say about foreign investors when locals are shy of making any investment in the present jittery conditions,” Tariq Saeed, President SAARC Chamber of Commerce & Industry and leader of ruling group at FPCCI said
He said that worse security situation was the sole reason for the postponement of FPCCI’s event as in the current situation as the foreigners are scared to visit Pakistan.
When asked about the investment prospects of the country he replied that the future is totally bleak unless the security situation improves that is key factor for investment anywhere in the world.
However, Salim Mandiwala, Chairman Board of Investment (BoI) gave his own version on investment and security situation in a press talk in Karachi. He admitted that terrorism impedes investment, however, he noted it is basically the returns that woo the investor to put his money in any project. “If a investor sees the opportunity of making gains by investing in Congo—affected by prolonged civil war—he will go to there,” Mandiwala remarked.
To justify his argument, Mandiwala that he could produce the balance sheets of around 150 multinational companies that are making profits and are signing new business deals.
Analysts, on the other hand, said that ground realities speak for themselves and what is the health of national economy and how it is suffering from the bad security situation is not a hidden fact.
“The postponement of two international conferences is the evidence that foreigners would not visit Pakistan unless a visible improvement is seen on the security front of the country,” they noted
http://www.dailytimes.com.pk/default.asp?page=2009\10\18\story_18-10-2009_pg5_5