Pakistan ranked 83 in best countries for business

[Interceptor]

Pakistan ranked 83 in ‘Forbes best countries for business’

ISLAMABAD: Pakistan has been ranked 83 in a global list of the best countries to do business in, improving from rank 93 of last year. While Pakistan has climbed 10 places, India is down thirteen notches to 64. In the new Forbes study that compared business climate from various angles in 121 countries, Denmark tops the list, having displaced the US, last year’s leader, Ary ONE World TV reported. Ireland and Finland follow at No 2 and No 3 spots. The United States is at No 4 now, followed by United Kingdom. The Forbes report pointing out that Pakistan, an impoverished and underdeveloped country, has suffered from decades of internal political disputes, low levels of foreign investment, and a costly, ongoing confrontation with neighboring India. However, since 2001, IMF-approved reforms most notably, privatisation of the banking sector - bolstered by generous foreign assistance and renewed access to global markets, have generated macroeconomic recovery. Pakistan has experienced GDP growth in the 6-8% range in 2004-07, spurred by gains in the industrial and service sectors. Poverty levels have decreased by 10% since 2001, and Islamabad has steadily raised development spending in recent years, including a 52% real increase in the budget allocation for development in FY07. In 2007 the fiscal deficit - a result of chronically low tax collection and increased spending - exceeded Islamabad’s target of 4% of GDP. Inflation remains the top concern among the public, jumping from 7.7% in 2007 to more than 11% during the first few months of 2008. app

Daily Times - Leading News Resource of Pakistan

 

[mujahideen]

This is not good enough, we must be number one, until we get their we should not rest, we shouldn't rest even if we are number one.

 

[maqsad]

These rankings are meaningless as far as living standards and prosperity are concerned. Forbes is just rating countries on the basis of how much money foreign investors can loot from the local market by setting up shop.

Using Wall Street as a yardstick to measure economic well being is very short sighted. An economy of 160 million people should be more concerned about it's own self sustaining domestic infrastructure, not how much a mulinational drools over their prospects of exploitation.

 

[vish]

These rankings are meaningless as far as living standards and prosperity are concerned. Forbes is just rating countries on the basis of how much money foreign investors can loot from the local market by setting up shop.

Using Wall Street as a yardstick to measure economic well being is very short sighted. An economy of 160 million people should be more concerned about it's own self sustaining domestic infrastructure, not how much a mulinational drools over their prospects of exploitation.

I do agree with you on certain aspects; you are, however, ignoring the multiplier effects of foreign investment.

 

[maqsad]

I do agree with you on certain aspects; you are, however, ignoring the multiplier effects of foreign investment.

That is just a buzzword created to give the false impression that foreign investors will always offer their target economy something which the locals themselves cannot provide themselves.

Domestic investment has a multiplier effect as well and has the added benefit of routing profits to the local economy instead of overseas.

 

[vish]

That is just a buzzword created to give the false impression that foreign investors will always offer their target economy something which the locals themselves cannot provide themselves.

Domestic investment has a multiplier effect as well and has the added benefit of routing profits to the local economy instead of overseas.

Ofcourse, domestic investment has its positiuve, which are any day better than foreign investment. But the one thing that investment sorely needs is capital and expertise and technology, which often the domestic players are unable to provide. Hence, foreign investment is needed; it does benefit the local economy immensely.

 

[maqsad]

Ofcourse, domestic investment has its positiuve, which are any day better than foreign investment. But the one thing that investment sorely needs is capital and expertise and technology, which often the domestic players are unable to provide. Hence, foreign investment is needed; it does benefit the local economy immensely.

Once again domestic investment of X dollars will have the exact same multiplier effect as foreign investment of X dollars so saying that foreing investment has a multiplier effect is misleading because there is nothing special about it. Every investment has a multiplier effect.

Capital can be raised domestically or it can be borrowed with soft loans spread out over a decade or two. If a project is worthy enough for a foreigner to invest in then it should also be worthy enough for a foreign bank to lend towards. Expertise and technology can be imported in the beginning if needed and then gradually taken over by local talent. In a low income economy a foreign firm can seldom do things cheaper and usually only invest when they get a monopoly in the local market.

 

[vish]

Once again domestic investment of X dollars will have the exact same multiplier effect as foreign investment of X dollars so saying that foreing investment has a multiplier effect is misleading because there is nothing special about it. Every investment has a multiplier effect.

Capital can be raised domestically or it can be borrowed with soft loans spread out over a decade or two. If a project is worthy enough for a foreigner to invest in then it should also be worthy enough for a foreign bank to lend towards. Expertise and technology can be imported in the beginning if needed and then gradually taken over by local talent. In a low income economy a foreign firm can seldom do things cheaper and usually only invest when they get a monopoly in the local market.

Then why is it that domestic firms do not come up?

 

[Sam Dhanraj]

Well, compared to last year Pakistan has jumped Up 10 positions in the rating, which looks good. The rise in ranking is better when compared to India and China.

Pakistan
Rank-previous year -93
Current Rank-83

While India is now ranked at 64 (down from 51) and China ranked at 79 (down from 77).

Pakistan
Trade Freedom- 102
Monetary Freedom- 93
Property Rights- 74
Innovation- 64
Technology- 81
Red Tape - 45
Investor Protection- 18
Corruption- 101
Personal Freedom- 102
Corporate Tax Rate- 69

 

[maqsad]

Then why is it that domestic firms do not come up?

Many reasons. The government is greatly responsible and it also looks like it is complicit in keeping the pakistani economy backwards and underdeveloped.

One example is automobiles. Years ago the govt could have passed a law making the importation of personal motor vehicles illegal after 5 passing years. Simultaneously it could have passed a law making the importation of car parts illegal in 3 years. Immediately you would see a rush on the part of Pakistani firms to set up manufacturing plants for any kind of a car. Along with cloned spare parts or spare parts manufactured under license. The govt could have simultaneously given a 20 year tax holiday to all automobile assembly plants. But even now you don't see anything like this.

Another example is banking. Instead of protecting and nurturing local banks and financial institution the govt is selling them off for pennies on the dollar to looters from abroad. The list goes on and on. The govt is not working for the people and economy of pakistan, it is working for wall street, oil sheiks and other looters from abroad. Case in point Shaukat Aziz who many people want to execute because he was such a traitor for selling out the economy along with Musharaff. Nawaz Sharif also squandered billions of F-16s which were never going to be delivered and also purchased a ton of oil burning generators to please his Saudi puppetmasters.

The list goes on and on, this is just off the top of my head. Also to blame are dimwitted pakistanis who pat each other on the back and cheer every time a piece of pakistan owned by the people(govt) is sold off to looters. I'm sure if any journalist with two braincells to rub together wanted to expose this state of affairs they could but they don't either because they are retarded, apathetic or are bought and paid for.

 

[QADRI]

its really interesting to read this...depite of very unstable political and social factors, like increase in loadshedding, increase in rate of Petrol and other energy sources, increase in political unstability and other security issues...we are moving forward..its really interesting.