Munich Personal RePEc Archive

Investment in Pakistan: A Critical Review

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

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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.

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