ISLAMABAD: Pakistan must tackle systemic barriers hindering foreign investment, exports, and technological development to enhance its economic potential, according to Sardar Masood Khan, former Ambassador of Pakistan to the United States, China, and the United Nations, and former President of Azad Jammu and Kashmir.

According to the President of Azad Jammu and Kashmir, Sardar Masood Khan, who spoke at the Center for Law and Security (CLAS) about Pakistan’s economic and investment landscape, highlighted the decline in foreign direct investment as a significant challenge, especially when compared to regional economies such as Bangladesh, India, and Sri Lanka. He identified structural challenges that require sustained attention, including weaknesses in industrial production and value chains, which constrain exports.

Khan emphasized the need for improvements in intellectual property protection and the ease of doing business. He also noted that frequent changes in high-level institutional positions could hinder effective policymaking due to a lack of sector-specific expertise among leaders.

He pointed out that Pakistan’s international reputation has suffered over decades, impacted by the war on terror and the conflict in Afghanistan, while regional countries have made substantial economic progress. He urged Pakistan to enhance its economic image and showcase its investment potential to global businesses.

Khan mentioned the activities of international enterprises and multinational companies in Pakistan as evidence of existing opportunities despite challenges. He called for better reflection of such investments in Pakistan’s overall investment narrative.

Discussing technology and startups, Khan noted the growth of Pakistan’s technology ecosystem since 2018, with a significant increase in startup investment around 2020, followed by a decline. He emphasized the potential in freelancing and the digital economy, contingent upon improved infrastructure and policy support.

Khan identified corruption, complex taxation, policy and political instability, limited access to finance, inadequate education, bureaucratic hurdles, and governance weaknesses as significant challenges to competitiveness and investment.

He concluded that while Pakistan’s environment is complex, it offers significant opportunities. Raising awareness, strengthening institutions, developing competencies, and promoting informed policy debate could help address economic challenges and build a foundation for sustainable growth.