FDI to touch 20pc of GDP in 5 years
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FDI is foreign direct investment, and he is talking about foreign investment.
Read up on difference between FDI and investment to GDP ratio. Yes he was also talking about FDI and the moron journalist picked it was 20% of GDP FDI.
Fair enough, so you mean he was talking about Gross Fixed domestic Investment/Capital Formation right? That would make sense, cause it was about 13-14% for Pakistan last year. Stupid journos.
Gross fixed capital formation (% of GDP) | Data | Table
According to this, List of countries by gross fixed investment as percentage of GDP - Wikipedia, the free encyclopedia
It was 20% in 2008 then went downhill from there to 10% in 2012. A 14% in 2013 means things are looking up for the Pakistani Economy. Say whatever you may about Nawaz Sharif but he seems to be on the right track as far as the economy is concerned.
Yes but regional economies have it from mid 20s to 35% so even at 20% it's just moderate. For China it's a whopping ~50%!
farhan_9909
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Getting upto 20% in 5 years is way too slow.I believe we should have a target of upto 25-30% of Investment to GDP ratio by 2018
if we really are into getting 1 trillion dollars GDP by 2023
if we really are into getting 1 trillion dollars GDP by 2023
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Interesting discussion. I would like to thank both @Roybot and @Bilal. for their information and analysis. Yes indeed 20% is too low a target for Gross Fixed Capital Formation. But then any prediction has to take into account sentiment that drives investment in addition to government spending on infrastructure. That can be tricky.
I think we need to dig a little deeper to get to the truth of this figure.
I have aggregated FDI inflows into Pakistan since 1970 with data from Pakistan - Foreign direct investment
The total comes to $32.6 Billion. With Pakistan's GDP (2012) being $231.2 Billion (World Bank), we can see that this comes to exactly 14.1%. I had speculated about this possibility in an earlier post, but did not hunt for numbers. 1% of GDP as FDI investment per year is perhaps a realistic target. We have G3 & G4 auctions coming up. We will have auction of state enterprises. Moreover with improvements in energy scenario and (hopefully) tackling of militancy, we should be a good FDI destination..
Upon reading Roybot's post about Gross Fixed Investment, I could not imaging 20% being a realistic target. I also noticed that the quote from Chairman BOI is direct quote. The journalist did not say anything on his own.
Case solved.
@AhsanAmin, What do you think?
I think we need to dig a little deeper to get to the truth of this figure.
I have aggregated FDI inflows into Pakistan since 1970 with data from Pakistan - Foreign direct investment
The total comes to $32.6 Billion. With Pakistan's GDP (2012) being $231.2 Billion (World Bank), we can see that this comes to exactly 14.1%. I had speculated about this possibility in an earlier post, but did not hunt for numbers. 1% of GDP as FDI investment per year is perhaps a realistic target. We have G3 & G4 auctions coming up. We will have auction of state enterprises. Moreover with improvements in energy scenario and (hopefully) tackling of militancy, we should be a good FDI destination..
Upon reading Roybot's post about Gross Fixed Investment, I could not imaging 20% being a realistic target. I also noticed that the quote from Chairman BOI is direct quote. The journalist did not say anything on his own.
Case solved.
@AhsanAmin, What do you think?
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