Investment in Pakistan: A Critical Review

Zakaria, Muhammad (2008): Investment in Pakistan: A Critical Review.

Abstract

The paper critically evaluates investment climate in Pakistan. It covers incentives given by the government to domestic and foreign investors. Special emphasis is placed on identifying the barriers that discourage investment in Pakistan. Major impediments include high doing business cost, political instability, corruption, government bureaucracy, inconsistent government policies, and poor law and order situation. The paper also highlights some international best practice solutions to encourage investment in the country. Pakistan should attach short-term priority to attracting investment to foreign exchange earning sector or at least both the foreign exchange earning sector and other sectors simultaneously.

• Item Type: MPRA Paper
• Language: English
• Keywords: Growth, Foreign Investment, Portfolio Investment
• Subjects: H - Public Economics > H5 - National Government Expenditures and Related Policies > H54 - Infrastructures ; Other Public Investment and Capital Stock; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E22 - Investment ; Capital ; Intangible Capital ; Capacity; F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements

References

Khan, A. J. and Y-H. Kim (1999), Foreign Direct Investment in Pakistan: Policy Issues and Operational Implications,

EDRC Report No. 1999 (66), Asian Development bank Shirouzu, H. (1993), Observations on General Economic Situation of Pakistan Relating to Investment Climate, The Federation of Pakistan Chambers of Commerce and Industry, Karachi.

WB (2007), World Development Indicators, World Bank