ISLAMABAD: Coordinator to Federal Tax Ombudsman Meher Kashif Younis on Thursday lauded the Foreign Direct Investment (FDI) role in promoting economic growth and development by bringing in capital, technology, expertise, and job opportunities to host countries.
Speaking at a round table conference on “Impact of excessive screening on global foreign direct investment”, he said its important for countries to protect their national security and economic interests, however, lengthy screening measures can indeed have negative impact on global FDI, said a press release.
He said it is equally important to strike a balance between security concerns and promoting a welcoming environment for foreign investors.
He said if developed countries impose overly restrictive or burden some screening processes, it can discourage foreign investors and hinder the flow of investments especially in developing countries especially Pakistan.
He said the United Nations Conference on Trade and Development (UNCTAD) has also recently cautioned that excessive screening may result in missed opportunities for the host country to attract valuable investments.
In today’s globalized economy, countries compete for FDI, and if potential investors face onerous screening processes, they may choose alternative destinations with more favorable investment climates, he added.
He said transparent and efficient screening procedures that focus on genuine security risks without unnecessary barriers can help mitigate the negative impact on global FDI.
Meher Kashif Younis said investors with decreased confidence and reduced competitiveness may opt for countries with more streamlined and efficient screening mechanisms instead.
He said it can make a country less competitive compared to others with more investor-friendly environments said adding that international investment in the renewable energy supply chain is growing and China is the second largest FDI host country in the world.