The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel (BMP) has lamented that country’s investment ratio has fallen to its lowest level in 50 years, reaching mere 13% of the economy in the outgoing fiscal year, reflects the challenges faced by the Special Investment Facilitation Council (SIFC) in attracting investment without addressing fundamental economic issues and achieving political stability. The BMP Chairman and FPCCI former president Mian Anjum Nisar observed that the failure to meet the investment target of 15 of the GDP has limited the government’s ability to address infrastructure and social sector issues, increasing reliance on loans for development projects. According to the data, the country’s economy experienced a low growth rate of 2.38pc compared to population growth of over 2.6pc, while inflation on an average ranges between 25pc and 26pc, portraying persistent stagflation over the last few years. However, the overall size of Pakistan’s economy in dollar terms had gone up to $373 billion in the current fiscal year 2023-24 against revised estimates of $338 billion for the last financial year. He said that the investment-to-GDP ratio stood at 12.8 per cent in the fiscal year 1972-3, then it had remained on the higher side in all subsequent fiscal years since then and clinched highest-ever position of 26.2pc of GDP in 2001-2. In the fiscal year 2014-15, it stood at 17.2pc of GDP, and 17.1pc of GDP in 2017-18 during the tenure of PMLN. During the tenure of Imran Khan, the investment-to-GDP ratio stood at 15.6pc in 2021-22. It stood at 14.1pc of GDP in 2022-23 under the PDM-led government, but then it witnessed the lowest ebb and declined to 13.1pc of GDP in 2023-24. Mian Anjum Nisar said that that restoring energy sector viability requires strong cost-side reforms, including continuation of efforts to improve transmission infrastructure, better integration and expansion of renewable energy capacity; improving DISCO performance via either privatization or long-term management concessions; moving captive power demand to the grid; revisiting, the terms of power purchase agreements; and continuing to convert publicly-guaranteed PHPL debt into cheaper public debt. He outlined the reforms’ agenda that has either been undertaken by Pakistan or where Islamabad needs to put more efforts. In the case of the energy sector, terms of power purchase agreements have not come heavily under the scanner as the focus has first been on taking recovery and tariffs to a sustainable level. Higher energy prices triggered mass protests across Pakistan last year and have also stifled energy demand with policymakers scratching their heads on how to move forward for the sector’s viability. With runaway inflation triggering record high interest rates, demand for energy has reduced further, leaving the government in a ‘catch-22’ situation. He said that the only sustainable solution for the sector is decisive action to address cost-side and infrastructure issues. He quoted the IMF report which is an important document as many see it as a guideline in the light of Pakistan’s pursuit for a longer, larger program with the IMF. In its recommendations, he suggested to the government that basic tariff of IPPs should be changed in Pakistani currency instead of dollars and if this change is not made, an amount of Rs5,266 billion will have to be paid. Similarly, the profits to the IPPs owners should be given in Pakistani rupees instead of dollars.