Islamabad:
Polish Ambassador Maciej Pisarkski on Thursday urged Pakistan to take immediate steps to ease the lives of foreign investors, who are suffering badly due to delay in payment of their dues and difficulties in keeping their machinery running.
The ambassador made the remarks at a time when Pakistani authorities were trying to bring in foreign investment amid external sector and budget challenges that had created immense difficulties for foreign investors working in Pakistan.
“Something has to be done to make life easier for existing investors,” Pisarski remarked to a group of reporters at the embassy.
Foreign investors are grappling with the problem of delayed payments for the services they have rendered and are even facing hurdles in arranging spare parts for their machinery due to non-payment, the envoy said. PGNiG – a leading Polish company – is one of two foreign companies still engaged in gas exploration in Pakistan despite numerous challenges. However, the company has suffered due to non-payment for gas explored and supplied to the government.
PGNiG wants to reinvest in Pakistan, but those efforts are being undermined by the lack of settlement of its past debts, he added. Another Polish company drilling wells in Pakistan is also facing difficulties.
The central bank maintains tight control over dollar outflow due to limited foreign exchange reserves despite the International Monetary Fund (IMF) umbrella for Pakistan. This has created serious problems for foreign investors and lenders. Pakistan’s gross foreign exchange reserves remain low at $9.1 billion, despite an injection of $3 billion from the IMF and $6 billion in open market dollar purchases by the central bank.
The Polish envoy said the embassy had repeatedly addressed the issues with the previous Pakistan Democratic Movement (PDM) government, the caretaker government and the new government. The embassy has also discussed the issues with the Special Investment Facilitation Council (SIFC). Pakistan is a challenging market for many reasons, the ambassador said in response to a question about the prospects for new foreign investment.
UK Foreign, Commonwealth and Development Office Chief Economist Adnan Khan said last week that foreign investors are turning to Pakistani investors, who have been sitting on the fence. The SIFC has not yet succeeded in attracting significant foreign investment, although it has helped address some procedural irritants.
The image of Pakistan abroad is not what it should be as this country also offers many opportunities, the ambassador said. However, despite the challenges faced by Polish companies in Pakistan, the embassy is organizing a visit of nine Polish companies operating in the construction, manufacturing, energy, mining, coal and wastewater sectors.
Pisarsky said bilateral trade between the two countries was less than one billion dollars, but was gradually increasing. Poland had a trade deficit of $666 million last year, which it wants to bridge through more exports to Pakistan. “We want Polish companies to stay in Pakistan and expand their operations, unlike many other foreign companies that are leaving,” the ambassador said. “Pakistan should take care of companies that have not left.”
He emphasized that the Polish embassy is committed to developing business and economic ties between Poland and Pakistan. This year, the embassy is organizing a business mission through the GreenEvo program, which is led by the Polish Ministry of Climate and Environment.
Published in The Express Tribune, May 17u2024.
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