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Investment Climate in Pakistan

In: Business and Management

Submitted By irteza
Words 324
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| Investment Climate in Pakistan |

The investment climate of any country can be better estimated by analyzing three broad indicators that include macroeconomic (fiscal, monetary, exchange rate and political policies etc), governance (bureaucratic, financial and legal systems etc) and lastly infrastructural support (transportation, electricity supply and communication etc). The two major strengths and shortcomings of investment climate of Pakistan based upon above criterion are as follows. StrengthsPakistan is a country of more than 180 million people making it sixth most populous in the world. This pool of human resource has some disadvantages as well as some benefits too. Skilled and Inexpensive Workforce:The recent efforts of Higher Education Commission (HEC) of Pakistan in collaboration with Private Sector has resulted in the establishment of reputable institutes which are producing skilled and inexpensive workforce making it highly favorable for foreign investors to invest in country compared.Conversion and Transfer Policies:There are no limits on dividends, remittance of profits, debt service, capital, capital gains, and returns of intellectual property or royalties. The Government of Pakistan allows all these transfers to be made easily and is tax-exempted. Furthermore, the tariffs and custom duty policies also favors investment in Pakistan. | ShortcomingsPakistan is unfortunately plagued with many issues that hinder investment in the country. This declining trend is clearer in last few years with low investment in infrastructural projects and no privatization since 2008.Judicial and Regulatory Authority:Weak enforcement and compliance by regulatory authority directly affects the investors’ confidence. The condition is aggravated by the corrupt officials and delays in judicial hearings of the violators of the regulations.Poor Security and...

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