Minister Of State & Chairman - Board of Investment (BOI), Pakistan

Profile: Miftah Ismail holds a PhD degree in Public Finance and Political Economy from Wharton School of Business, University of Pennsylvania and worked at International Monetary Fund (IMF) as a professional economist.He is a director of Pakistan International Airlines (PIA) and the Chairman of Sui Southern Gas Company (SSGC).

Miftah also has served in Institute of Business Administration (IBA) as a visiting faculty member. He was the former head of Punjab Board of Investment. 

Blurb:

Invest in Pakistan now, because it is the right time to invest.

Evolve: You are a well learnt man as you have done your doctorate in Public Finance and Political Economy. How did you convert your knowledge into profession?

Dr. Miftah Ismail: My area of research was public finance and political economy. I also had the business experience of twenty five years in Pakistan before joining Punjab Board of Investment & Trade (PBIT) and Board of Investment (BOI). So I was well known to the requirements of a businessman and government constraints. Thus heading BOI was a natural job for me. Here we are trying to bridge that gap in line with the vision of Prime Minister Nawaz Sharif with efforts to increase investments in Pakistan.

Evolve: You have headed both Punjab Board of Investment (PBIT) and Board of Investment (BOI) Pakistan. Please share the challenges and achievements of this journey?

Dr. Miftah Ismail: In some cases the challenges and achievements at PBIT and BOI are similar and in some cases are different. The common challenge is to align investor needs and government’s policies with each other. At federal level the consent of both federal and provincial governments is must after 18th amendment. Sometimes it becomes very difficult to get the provinces to do what we think they should do but nonetheless I have very good cooperation with all four provinces’ investment authorities Our number one challenge is to increase investment to GDP ratio. Prime Minister Nawaz Sharif has given us the target to bring in the investment 20% to GDP ratio. India, Bangladesh are getting investments more than 30% while Sri Lanka 28% to their GDP. In order to us to grow our economy at 6-7% today, we need investments. 

Evolve: When we talk about foreign investment in Pakistan the first thing comes in mind is “investment protection”. What policy BOI has opted, to address this subject as this is the point from where the game begins?

Dr. Miftah Ismail: To be very honest, investment protection is not such a big problem in Pakistan. We have very good laws dating back to 1970s and 1980s that protect investments. We are signatories to a lot of conventions including New York convention that protects investments. So investment protection is not such a big problem in Pakistan. All stake holders in Pakistan are committed to protect investment both local and foreign. 

Evolve: Do you believe that without political stability any country can assure its economic growth? If so, then how are you coping with this reality in Pakistan?

Dr. Miftah Ismail: I think political stability is one factor that business people take into account while making a decision for investment. This is not the crucial point that either there is political stability or not. Pakistan especially in last one year has proved that how robust our democracy is. All stakeholders are aware of the fact that businesses should thrive.   

Evolve: Pakistan is offering some of the world’s highest return on investment in power plants. Why we are not going for hydel power projects?

Dr. Miftah Ismail: Why not, we are going for hydel power projects. Government is buying land for Diamer - Bhasha Dam. Last year we left for an investment conference organized by US government to attract the investors for Diamer - Bhasha Dam on Public-Private partnership basis. We also have got approved the loan for Dasu hydropower project from Asian Development Bank. This is a 4500 MW project with water storage capacity of 6.5 million acre feet. Then in China Pakistan Economic Corridor Karote power project of 700 MW will also be constructed. 

Evolve: Pakistan is also running short of gas. How can BOI convince an industrialist to come and invest in this situation? Is current government working to improve the scenario?

Dr. Miftah Ismail: OGDC has discovered two or three wells of gas in last year or so. PPL and other foreign companies are also trying to find gas. Existing wells in Pakistan are going to deplete and new discoveries are not enough to meet the requirements, that’s why we are importing gas. SSGC, the company which I chair, has completed the energy terminal in world record time under public private partnership through Engro Corporation. By grace of Allah Almighty we are issuing second Letter of Interest (LOI) for second terminal within this month. Both terminals will have the capacity to import 1.2 billion cubic feet gas at rate nine (9) million ton per annum. So, gas shortage will go away and we shall be able to provide gas to all industrial consumers. 

Evolve: What do you think that up to what extent GSP plus status would help to strengthen Pakistan’s economy?

Dr. Miftah Ismail: Pakistan is a very large economy. This status has benefited the textiles as we have seen a boost of $1 billion in garments and textile exports to Europe. In terms of our economy it is important but not very crucial. It is not a game changer like China Pakistan Economic Corridor. We shall see the effects of this incentive in two to three years when people will build more factories in Pakistan. It will give a significant boost to our economy but it is not critical to our growth.

Evolve: Please share that how China Pakistan Trade Corridor (CPEC) can be claimed to be a “Game Changer”?

Dr. Miftah Ismail: Firstly, China intends to invest $46billion through this project. Secondly, now a day when we travel to Karachi or Peshawar, we cannot even imagine traveling by road except Lahore -Islamabad motorway but after this road we shall be able to travel from Karachi to Peshawar within twenty four (24) hours rather 2-3 days. Infrastructure will be superb. Thirdly, the economic outlook of Baluchistan will entirely be changed and we shall have a viable port at Gwadar with a fully functional city. There will be an awesome road network within provinces. Solar power plant in Punjab, wind, coal and nuclear power plants in Sindh, hydel power plants in KPK and Azad Kashmir will be built. More than twenty Special Economic Zones with Korea, Turkey, Japan and China along the corridor throughout Pakistan will also be set up. 

Evolve: How do you perceive and foresee the economic growth of Pakistan?

Dr. Miftah Ismail: Economy needs two to three years to take off with some necessary ingredients. First is good human resource. Pakistan by 2025 will have 5th largest middle class in the world. Second is availability of natural resources. There is $9 trillion worth of coal and a huge wind corridor in Sindh. In KPK and Northern areas, we have Indus Cascade with production capacity of 80,000 MW of electricity with water storage capacity of 20 million acre feet. In Baluchistan we have 30,000 sq. meters copper mining area and huge coastal lines with Sindh and Baluchistan.40,000 km long irrigation canals in Sindh and Punjab make these two provinces not only the bread basket of Pakistan but also of Asia. If we just manage the resources, the economy will get a boost. By grace of Allah Almighty economy of Pakistan is stabilized and Moody, JAICA, Morgan Stanley and all other experts are of the view that Pakistan is about to take off. 

Evolve: What motivates you?

Dr. Miftah Ismail: Pakistan is very close to my heart. Allah Almighty has blessed me with great family and good friends. I wish if I can make a difference that would be a source of satisfaction and a process of self actualization for me. 

Evolve: If you could talk to one person from history, who would it be and why?

Dr. Miftah Ismail: That’s a very difficult question. I really do not know the answer. There are many people in the history who really fascinate me. Science, Physics and Biology fascinate me. I would like to meet Einstein and Darwin. I think that reading books is the best way to talk to the people in history.  

Evolve: Any message to readers of EVOLVE?

Dr. Miftah Ismail: My message to the readers is that since Muhammad Nawaz Sharif has come to the power, our stock market has gone up by about $40 billion. Our consumer markets are thriving. Economy is stable. We are on verge of take off. Look at the land prices that have gone up. My message to business community is to invest in Pakistan now because it is the right time to invest before it becomes more expensive to invest; Pakistan offers the best returns in all type of projects either consumer or non consumer.