“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