ANALYSIS OF PAKISTAN ATTRACTIVENESS 诺甜 2620210087.pptx
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May 05, 2024
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Language: en
Added: May 05, 2024
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ANALYSIS OF PAKISTAN ATTRACTIVENESS 诺甜 2620210087
AGENDA Introduction BENEFITS OF INVESTMENT IN PAKISTAN Investment Costs Economic and political risks in pakistan
#1 Continuous GDP growth Pakistan’s economy has seen a notable GDP growth. As a result, in 2017, the GDP of Pakistan increased by 5.28%, making it one of the fastest growing emerging markets in the world. Their major industries contributing to this growth are textiles, garments, agriculture and construction materials.
#2 Rapidly growing population . Pakistan has a population of over 200 million people. It is the 6th most populous country in the world. Furthermore, Pakistan’s population is rapidly growing and is predicted to reach 300 million by 2050. Imagine the possibilities Pakistan’s economy unlocks in the future for business and employment opportunities
#3 Young and skilled workforce The median age of the population is 22.7 which makes Pakistan’s workforce very young and the country to gain from demographic dividends for the next decades .
#4 Emerging middle class Together with a growing economy, Pakistan’s middle- class is also emerging. Currently, Pakistan’s middle class is estimated to be over 80 million people – a large number considering that is already the population of Germany alone. On top of that, its middle class is expected to even surpass Italy and UKs in a forecast period between 2016-2021 .
#5 Improving infrastructure Even more, the government recognizes the importance of improving and expanding infrastructure services in Pakistan. This sustains both economic and social development. To create better conditions for businesses in Pakistan, the government is actively focusing on eliminating gaps in infrastructure. For example, by encouraging the Public Private Partnership (PPP) which involves the maintenance and financing of different infrastructure sectors such as Mass Urban Public Transport, Transport and Logistics, Industrial, and Social Projects. Pakistan is also a part of the China-Pakistan Economic Corridor (CPEC) which consists of various infrastructure projects, aiming to improve connectivity within the region.
#6 Foreign investment incentives Pakistan offers various grants and incentives to foreign investors. These incentives include, for example: Tax concessions Double tax treaties (exemption from various taxes and duties) Low-interest loans Research and development Consequently, there are also specific laws to safeguard foreign investors, including the Foreign Private Investment (Promotion and Protection) Act 1976 and the Protection of Economic Reforms Act 1992. Pakistan offers a business-friendly environment and space for foreign direct investments since it is their way to gear up FDI. The most attractive tax concessions and exemptions are also available to foreign businesses.
Economic and political risks in pakistan Political instability: Pakistan has a history of political instability, which can lead to policy changes, regulatory uncertainty, and potential disruption to investment projects. Security concerns: The country faces security challenges such as terrorism and insurgency, which can pose risks to investment in terms of safety of personnel, assets, and operations. Economic volatility: Pakistan's economy can be subject to fluctuations due to factors such as currency depreciation, inflation, and fiscal deficits, which may affect the returns on investment. Infrastructure limitations: Inadequate infrastructure in terms of transportation, energy, and telecommunications can hinder business operations and increase costs for investors. Corruption: Pakistan has struggled with corruption at various levels of government and business, which can increase the costs of doing business and present legal and reputational risks for investors.
Investment Costs and Regulatory Environment for Foreign Investment in Pakistan : Investment Costs :