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Pakistan Lags Behind Bangladesh in Attracting FDI

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KARACHI: The inflow of foreign direct investment (FDI) has remained low in Pakistan when compared with some of the emerging economies in the South Asian region, especially Bangladesh, which shares a number of similarities with Pakistan.

A recent report released by the State Bank of Pakistan, while citing data from the IMF World Economic Outlook, said that FDI inflows to developing economies are expected to recover strongly from $280 billion in 2009 to $364 billion in 2011.

“This is true for Bangladesh where the inflow of foreign investment in the various economic sectors accelerating sharply,” the SBP report said.

However, in contrast, foreign investment in Pakistan has been falling persistently due to number of domestic factors such as energy shortages, macroeconomic instability and law and order situation.

“The ongoing war on terror has also putting negative impacts on FDI inflows which is evident from the fact that the business cost of terrorism is very high in Pakistan, the second worst in the world after Somalia,” it said.



A sector and source-wise comparative break-up on FDI during the last 15 years indicated that Pakistan and Bangladesh were almost same in terms of attracting FDI flows to their respective countries. But it is now on declining trend for the past few years on account of political instability, bureaucratic hurdles and weak infrastructural policies, it said.



According to the report, telecom, petroleum, power, oil and gas, and financial business were the sectors recorded substantial FDI growth in both countries over the last 15 years. The share of telecom sector in FDI witnessed a growth of 28.8 percent in Bangladesh and 27.6 percent in Pakistan. FDI in petroleum and oil and gas stood at 24.8 percent in Bangladesh and 24.6 percent in Pakistan. The financial sector of Pakistan showed 18.5 percent growth in FDI while it recorded at 7 percent in Bangladesh during the last 15 years, the report said.


Pakistan is lagging its counterpart in terms of competitiveness caused by weak macroeconomic environment, said World Economic Forum’s Global Competitiveness report 2011-12. The report said Pakistan stands at 138th position out of 142 countries. Bangladesh stands at 75th position. Similarly, the overall ranking of Bangladesh is 108 while Pakistan is at 118th position. Fiscal discipline, inflation, interest rate spread and country credit rating is one of the worst in Pakistan, the report added.

Pakistan lags behind Bangladesh in attracting FDI - thenews.com.pk

Bangladesh has Left Behind Pakistan in Most of the Sectors.
 

Jade

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It is great to see a great friendly developing between India and Bangladesh.
 

zip

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If they can manage to bring down population they are certain to enter in to a golden era within four decades
 

American Pakistani

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Bad governance, world's most corrupt system & leaders, electricity issues, polititions use region/provinces/territoris card for their benifit & make fool out of general public & finally country had to take the loss, etc etc aresome main issues of this. Otherwise Pakistan have more potential than even india to develop rapidly. Almost 70% population is below 30 years, have a vast land with huge mineral & natural deposits as well as agricultural lands.
 

Shardul.....the lion

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Just a question to bangladeshi members,

Out of total FDI in bangladesh, how much investment is made by India, US and China percentwise?
 

ebr77

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Just a question to bangladeshi members,

Out of total FDI in bangladesh, how much investment is made by India, US and China percentwise?
Updated data isn't available.
According to BOI website, ( Foreign Direct Investment in Bangladesh )
Countrywise foreign and joint venture investment during 2009-2010*

India invested in 9 project investing $8.451 mil.
US invested in 5 project investing $2.990 mil.
China invested in 12 project investing $21.000 mil.

I hope you get an idea and the answer to your question.
Thanks.
 

idune

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Indians are too eager to promote animosity between Bangladesh and Pakistan and on other thread between Bangladesh and Myanmar. These indians up for no good and source of all problems in South Asia. Just wondering why MOD has not taken down this flame bait thread and ban the indian?
 

boltu

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Like Iajdani bro said, As of now FDI is no big deal for Bangladesh and it hasn't played any significant role in Bangladesh's economic growth and is a very tiny part of our economy.It is the domestic investments by the local entrepreneurs which get the total credit for current growth rate of country's economy.As labor costs rising in China and other countries,companies in there are looking for cheaper destinations to shift their business and Bangladesh is one of those cheaper destinations.If electricity and infrastructure problems can be solved within next few years then yes there'll be more and more FDIs which'll ultimately boost the growth rate.
 

SamranAli

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good for BD. Plus they west have not imposed a war on them, we have have problems because of it. In near future we are back on track you jealoused indians.
 

Baby Leone

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hmm Congrates for Bangladesh & than for the WoT in Pakistan...

BTW Pakistani Media hav gone mad this i hav seen few idiotic anchors saying tht bangladeshi currecy against dollar is stronger than Pakistani currency it means bangladesh has overtaken Pakistan in every field:D..

this useless pakistani media .....& its indians fans of specific news..:D

Like Iajdani bro said, As of now FDI is no big deal for Bangladesh and it hasn't played any significant role in Bangladesh's economic growth and is a very tiny part of our economy.It is the domestic investments by the local entrepreneurs which get the total credit for current growth rate of country's economy.As labor costs rising in China and other countries,companies in there are looking for cheaper destinations to shift their business and Bangladesh is one of those cheaper destinations.If electricity and infrastructure problems can be solved within next few years then yes there'll be more and more FDIs which'll ultimately boost the growth rate.
good to see tht Bangladeshis are not Pakistan centric unlike indians, the main target of Bangladesh is not beating Pakistan....good going guys...:)
 

Backbencher

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First and foremost Pakistan needs to allocate a better government in the coming elections .
Secondly they should provide atleast a minimum of 20 hours a day electricity so that business could again flourish .
Then automatically ull have your so called fdi advantage over Bangladesh .
 

ebr77

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Honestly guys FDI is no big deal with us, in my opinion neither it should be a for all of us as well. We need to improve domestic industries, increase their efficiency and move onto cutting edge tech. in near future, and increase regional co-operation.
 

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