Mian Habibullah, the hyperkinetic head honcho of Export Promotion Bureau, while talking to a high-powered delegation from South Korea informed them that the Government is seriously considering the setting up of a "foreigners’ enclave" in Karachi. The idea behind this is to provide a safe and secure environment for the foreign investors, their personnel, and their companies.

In early 1991, during my term as Chairman of the SITE Association of Industry, the largest industrial Association representing over 2,000 industries, I had advocated the setting up of this type of an estate and termed it a "foreigners’ enclave". I had been one of the speakers at a dinner for the Federal Secretary of Industries. The hon’ble chief guest had pooh-poohed my suggestion and very emphatically stated that the government will never allow another East India Company to come here. In other words, the Ministry was adamant that there be no special concessions for the foreign investor, and if there was going to be any industrialization, it was going to be all Pakistany.

In August 1991, the Association hosted a largely attended luncheon for the erstwhile US Consul-General, Richard Faulk. It was his first real get-together with the industrial and business community. Just a few days earlier, he had remarked to some businessmen at some private party, that the law and order situation was hurting foreign investment and this could prove discouraging to any plans Pakistan had to invite outside capital into the country.

In response to this remark, I ventured again to bring forth the concept of a "foreigners’ enclave". I had proposed that the Port Qasim area was ideal for this estate and that it was quite a few kilometers away from the confusion and chaos of Karachi. The proposed enclave would be exclusively for foreign companies who could set up their industries, have their own schools, hospitals, recreation clubs, shopping areas, golf clubs, marina clubs, a hotel and the necessary restaurants, etc. In fact, this would be a mini city with its own generation system, water purification plants, and a well-established security apparatus. More importantly, this enclave would provide thousands of jobs to the locals.

I remember that I was especially invited by the then Chairman of Port Qasim Authority, Admiral (retd) Akbar (the present KPT Chairman), who applauded my suggestion and informed me that the PQA was willing to set up this kind of an estate in its industrial park. He also offered to set up marinas and golf courses in the PQA area. Unfortunately, he was transferred before this scheme could be put into practice. However, I am sure, a copy of his proposals would be in the archives of the Authority. Mian Habib should get it from PQA.

My address of welcome was well-publicized and received brick-bats from certain official quarters, who obviously still sensed that this would bring in Jews, Hindus, and anti-state elements. However, this was appreciated by many diplomats who regularly were in contact with the Association. They only were apprehensive that the government in Pakistan had this terrible infliction called "inconsistency in policies" and like tiny-tots, kept on changing policies and incentives on a daily basis.

My stand was justified when in October, 1991, the then Industries Minister, Sh. Rashid announced the concept of "comfort zones" for the foreign investor. Amazingly, it had nearly all the points that I had elucidated just a couple of months back. All of a sudden foreign investment was a welcome commodity and all out efforts were made to bring the foreign investor to Pakistan. A high-profile conference was held in Islamabad, where a large number of foreigners and Pakistany expatriates were the guests of the government. Investment Conferences were now being held in different countries and the then Prime Minister was addressing them with aplomb. This trend continues even today !

The apathy shown by certain high-placed bureaucrats gave way to blarney. A new team went whole hog to bring in foreigners. MOU, LOI, LOS, BOI, were the catchwords. Everyone in the corridors of power in Islamabad is now gung-ho about foreign investment. Everyone there wants to kowtow over the incoming foreigners. Everyone about to retire wants an ottoman in the new company. Lobbyists are now swarming all over the capital. It’s money making time once again.

Nevertheless, the country is still not quite ready for the foreign investor, it seems. There is a need for a rethinking in the traditional averse behavior of the policy planners. There is a need to be aggressive and not dawdle over every petty issue. There is a strong need for an espirit de corps if Pakistan is to get her share from this foreign investment kitty.

Pakistan needs foreign investment now more than ever. The country has to decide between the two schools of thought in the on-going debate on this subject. One view point expounds the theory that foreign investment is an essential ingredient in the rapid industrialization of a developing country like Pakistan. It advocates massive inflow of foreign men, material, and money, especially in high-tech industries, so that the country advances into the ranks of the "Asian Tigers". The other school of thought is still promoting the East India Company theory, and they feel that bringing in foreign investment invites a neo-colonialist mentality where the foreigners are out to dominate (or rule) the market and will whisk away the cream of managerial and skilled talent by offering enticing perks and incentives, all at the expense of the domestic investors. They are not willing to have the foreigner "control" the essential services like telephones, electricity, and gas, among others. They are not favorable towards providing special facilities to the foreign investors which they remonstrate are at the cost of the local entrepreneur.

Therefore, it is high time that the EPB Chairman puts his words into action and gets the ball rolling to achieve the objective of setting up the "foreigners’ enclave" in the vicinity of Port Qasim. This estate should be high-tech with state-of-the-art planning and should be the showpiece to display to the investing community that Pakistan is on the right track. Pakistan needs safe and secured foreign investment if she is to leapfrog from the present desolate state of a tortoise-speed industrialization syndrome to an emerging superstar in the ranks of the newly industrialized nations. Pakistan is fast approaching her fiftieth birthday. How long will the country depend on wishy-washy policies and try to pretend that this country is a bedrock of investment. Maybe this country wants to strive in a system where xenophobia is the distinctive feature of the policy planners way of thinking. How come this eerie feeling doesn’t go away ? Huh ?