pakistan profile & investment opportunities
TRANSCRIPT
“Why you should invest in Pakistan ..”
GROUP 2
Vicky Kyaw Ni Ann Sabina Sandy
10 surprising facts
• https://www.youtube.com/watch?v=-YuLByAK4xM&t=50s
Contents
1. Introduction2. Institution based view ( Formal and informal
rules)3. Resource based view ( SWOT and VRIO)4. Key Reasons to Invest5. Top FDI countries in Pakistan6. Multinational companies operating in Pakistan7. Potential sectors to invest8. Recommendations and Conclusions
PAKISTAN ( South – East Asian )• GDP = 284 billion $ • Rank = 43th • Inflation (CPI) = 3.8 %• Unemployment = 6.5 %• Main industries Agriculture Manufacturing Services
Institution based view Policy Parameters
Manufacturing Agriculture Infrastructure and Social
Services including IT and Telecom Services
Government permission
Not required except for specified industries
Not required except specific licenses from concerned agencies
Remittance of capital, profits, dividends, etc.
Allowed Allowed Allowed Allowed
Upper limit of foreign equity (%)
100% 100% 100% 100%
Minimum investment (M$)
No restrictions 0.3% 0.3% 0.15%
Customs duty on import of PME (%)
5% 0% 5% 0.5%
Tax relief 50% 50% 50% 50%Royalty and technical fee
No restrictions Initial lump-sum upto $100,000Max rate 5% of net sales. Initial period 5 years
Friendly and welcoming Easy in communicating
SWOT analysis
InflationEnergy CrisesPolitical Instability
Geographic Location Deep Sea Port Skilled manpower Low-cost Labor.
Poor GovernanceTerrorism
SWOT
VRIO FOR PAKISTAN
Value
• •Islamic banking•Human Capital•Foreign Remittance •Self-Sufficient Agriculture Field•Nuclear Energy for Industry
Rarity
•Fiscal reforms•Free media•Pakistan leather•Natural Gas•Halal Market•Largest Deep sea Port•World largest Gemstone reserves
Imitability
•Stable economy •Abundant natural resources; arable land, water and natural gas•Large consumer market•Geographical location
•Ease to do business. Pakistan’s FDI laws, tax policies, foreign exchange liberalization, and banking procedures make it friendly and non-cumbersome to do business in Pakistan.•Expo center
Key Reasons to Invest
Geo-strategic Location
Investment Policies
Economic outlook
Trained workforce
Financial Market
Home to Multinational companies
FDI Statistics
Top Sectors
Pakistan Industry, Mining, Power Centers 1973Source: U.S. Central Intelligence Agency
CHINA – PAKISTAN ECONOMIC CORRIDOR
Conclusion
• FDI has become major growth factor in globalization of the world economy
• Pakistan has been taking effective policies and aggressively pushing economic reforms to attract foreign investment
Thank You