The Board of Investment (BoI) is updating the existing investment policy to boost Foreign Direct Investment (FDI) into the country. The updated police would focus on identified priority sectors, having investment potential and strong employment and trade benefits, according to an official document. These sectors include food and beverages, auto and auto-parts manufacturing, IT and IT enabled services, logistics, textile, tourism and housing and construction. The policy would also bring together all provinces and departments to map, simplify, eliminate and automate the regulatory landscape with a view to reduce the burden on the business. Establishment of “Pakistan Business Portal”, an online one stop shop is another important initiative for modernizing investment climate, while the government would promote Special Economic Zones for attracting FDI and besides reviewing the bilateral investment treaties to streamline investment in Pakistan. According to the document, accommodative fiscal and monetary policy measures and increased public investment that aim to crowd-in the private sector, would support higher investment rate in the country. Moreover, in the post-pandemic scenario, both public and private investments in pandemic-critical sectors, such as health care, medical supplies, pharmaceutical industries, communications and e-distribution were also likely to increase. The State Bank of Pakistan’s (SBP) various measures for digital on-boarding of overseas Pakistanis through Roshan Digital accounts, Naya Pakistan certificates and digital financial services would help increase foreign exchange inflows. Moreover, low interest rates and improved business climate would encourage investment. Numerous measures to improve ease of doing business are expected to boost capital formation and attract both domestic and foreign investment. Therefore, with the overall improved macroeconomic conditions, the economy is set to sustain growth momentum during 2021-22, it added. It is pertinent to mention that the country’s investment-to-GDP ratio declined from 15.3 percent of GDP in 2019-20 to 15.2 percent in 2020-21, owing mainly to lower foreign direct investment (FDI) inflows. Volume of private sector investment increased by 6.5 percent whereas its share in GDP decreased. However, in real terms, private investment contracted marginally by 1.3 percent.