UmarJustice
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Foreign funds and companies are looking to drastically increase investments in Pakistan and the rise could improve Pakistans dire economic conditions, financial experts told The News on Tuesday.The investors interest is based on their expectation that the newly elected PML-N government will follow pro-business policies.
A number of practicing chartered accountant firms here in Pakistan received an increased number of enquiries from the potential foreign investors, who are interested in undertaking investment in various sectors of economy and industry either for joint ventures, acquisitions or greenfield projects, said Mubasshar Mirza, a seasoned chartered accountant.
Most of the foreign companies are willing to set up their businesses in Pakistan. Moreover, there is considerable interest by top global fund mangers and individual investors looking for opportunities to invest in Pakistans stocks, he said.
The morale of local and foreign investors is high. They have welcomed the PML-N- led government wholeheartedly, while the Karachi Stock Exchange (KSE)s benchmark 100-share index reached the 22,000-point level so far on the back of foreign and institutional investment.
Experts say the share of overseas investment in Pakistan will take at least one or two years to increase.Foreign investment outlook in Pakistan has been stagnating since 2008. The country has witnessed a significant fall in foreign direct investment in the past five years with FDI inflows dropping from $5.4 billion in the fiscal year 2007-08 to $760.7 million in the fiscal 2011-12.
Foreign firms invested heavily in the telecom, financial and the oil and gas sectors during the Pervez Musharraf era. Foreign direct investment in Pakistan amounted to $853 million between July 2012 and April 2013 against $658.2 million during the same period in the previous fiscal.
The Pakistani community abroad is also playing an important role in promoting trade and investment to the homeland.
In this regard, a Glasgow based Pakistani engaged in these activities told The News that there are road shows and business trade fairs being organized in the UK.
The aim is to familiarize foreign investors with Pakistani products as well as educating them about the potential of the Pakistani market.
With the announcement of the PML-N government, investing in Pakistan has become a subject of substantive debate for the UK business community, he said.
It is important to mention here that a trade show will be started from Pakistans companies in New York, USA from June 5.
Analysts say this is a positive sign for the financial and capital accounts - and for the capital market, thus increasing foreign direct investment inflows to Pakistan.
However, the energy crisis, growing militancy, poor condition of law and order in three provinces especially in Karachi and high corporate tax rate are impeding foreign investment.
The country desperately needs to attract financial inflows to build up the dwindling foreign exchange reserves.
Much will depend on the intelligence and state of preparedness and available tools of the government to tackle economic challenges. The government will also have to improve economic governance by fostering a climate that encourages the foreign investment in the country.
Foreign investors eye opportunities in Pakistan - thenews.com.pk
A number of practicing chartered accountant firms here in Pakistan received an increased number of enquiries from the potential foreign investors, who are interested in undertaking investment in various sectors of economy and industry either for joint ventures, acquisitions or greenfield projects, said Mubasshar Mirza, a seasoned chartered accountant.
Most of the foreign companies are willing to set up their businesses in Pakistan. Moreover, there is considerable interest by top global fund mangers and individual investors looking for opportunities to invest in Pakistans stocks, he said.
The morale of local and foreign investors is high. They have welcomed the PML-N- led government wholeheartedly, while the Karachi Stock Exchange (KSE)s benchmark 100-share index reached the 22,000-point level so far on the back of foreign and institutional investment.
Experts say the share of overseas investment in Pakistan will take at least one or two years to increase.Foreign investment outlook in Pakistan has been stagnating since 2008. The country has witnessed a significant fall in foreign direct investment in the past five years with FDI inflows dropping from $5.4 billion in the fiscal year 2007-08 to $760.7 million in the fiscal 2011-12.
Foreign firms invested heavily in the telecom, financial and the oil and gas sectors during the Pervez Musharraf era. Foreign direct investment in Pakistan amounted to $853 million between July 2012 and April 2013 against $658.2 million during the same period in the previous fiscal.
The Pakistani community abroad is also playing an important role in promoting trade and investment to the homeland.
In this regard, a Glasgow based Pakistani engaged in these activities told The News that there are road shows and business trade fairs being organized in the UK.
The aim is to familiarize foreign investors with Pakistani products as well as educating them about the potential of the Pakistani market.
With the announcement of the PML-N government, investing in Pakistan has become a subject of substantive debate for the UK business community, he said.
It is important to mention here that a trade show will be started from Pakistans companies in New York, USA from June 5.
Analysts say this is a positive sign for the financial and capital accounts - and for the capital market, thus increasing foreign direct investment inflows to Pakistan.
However, the energy crisis, growing militancy, poor condition of law and order in three provinces especially in Karachi and high corporate tax rate are impeding foreign investment.
The country desperately needs to attract financial inflows to build up the dwindling foreign exchange reserves.
Much will depend on the intelligence and state of preparedness and available tools of the government to tackle economic challenges. The government will also have to improve economic governance by fostering a climate that encourages the foreign investment in the country.
Foreign investors eye opportunities in Pakistan - thenews.com.pk
