Factor Effecting Foreign Direct Investment In Pakistan

Pakistan has a very important strategic location. And due to its strategic location so many countries are connected with Pakistan through land as well as through Sea route. Pakistan is the central businesses center and focal point for many investors of different countries in Asia. But After 9/11 Pakistan is coping with many problems like: Terrorism, political instability, Economical Crises and instability, and very recent natural disaster of the flood and also having an earth quick in recent past. These all factors are effecting the capital inflow especially foreign direct investment and also the economic condition of the country.

Given its fragile balance of payments position and urgent need to boost industrial production, Pakistan needs to significantly increase its mobilization of foreign resources. It is crucial to accord high priority to foreign direct investment (FDI). Sections of this report include: importance of FDI in Pakistan; review of FDI policy; trends, issues, FDI, and economic impact of FDI; concentrated FDI in the power sector and its balance of payments implications; and conclusions, lessons, and policy challenges. Charts and tables.

During the 1990s, the governments of South Asian countries acted as ‘facilitators’ to attract FDI. As a result, the inflow of FDI increased. However, to become an attractive FDI destination as China, Singapore, or Brazil, South Asia has to improve the local conditions of doing business. This book, based on research that blends theory, empirical evidence, and policy, asks and attempts to answer a few core questions relevant to FDI policy in South Asian countries: Which major reforms have succeeded? What are the factors that influence FDI inflows? What has been the impact of FDI on macroeconomic performance? Which policy priorities/reforms needed to boost FDI are pending? These questions and answers should interest policy makers, academics, and all those interested in FDI in the South Asian region and in India, Pakistan, Bangladesh, Sri Lanka and Pakistan.

Pakistan is an agricultural based economy, therefore, agricultural sector is one of the most important sectors of Pakistan as it provides employment opportunities to millions of people, contributes significantly in GDP, fulfills local demand for food items, export variety of commodities to foreign countries, boosts foreign exchange reserves and eventually enhances economic growth rate of Pakistan's economy. This book has investigated the determinants of FDI in agricultural sector of Pakistan. There are very few studies which have investigated the determinants of FDI in agricultural sector of Pakistan, therefore, the main objective of this book is to determine the relationship of important factors which are expected to influence inflows of foreign direct investment in agricultural sector of Pakistan. The analysis will be very helpful for the policy makers and researchers to understand and adjust their policies to attract higher FDI inflows in their countries in general and in agricultural sectors of their countries in particular.

Essay from the year 2021 in the subject Economics - Case Scenarios, grade: 14, , language: English, abstract: This paper will focus on the impact of domestic interest rate and political instability on FDI of Pakistan using time series data from 1989-2019 in case of Pakistan. The findings are that political instability has a major impact for short time period and in long time period but in case of interest rate there is a negative minimal impact on FDI in both span of time. This can be because when you have lower nominal interest rate, thenyour domestic investor will benefit and country GDP will rise.

In the 1990s, foreign direct investment began to swamp all other cross-border capital flows into developing countries. Does foreign direct investment support sound development? In particular, does it contribute to poverty reduction?

The digital divide reflects a gap in telecom access, not lower propensity to use the internet in poor countries. Promoting access for poor households will help, but pro-competitive policy holds the key to rapid progress in narrowing the divide.