World Bank lists Pakistan above China, Russia and India for doing business

[F86 Saber]

For those of you fortunate (Or as in my case) unfortunate enough to have studied economics and finance, the formula is simple,

High Risk = High Return

Low Risk = Low Return

For example the companies operating in the market having a risky out look (e.g new and emerging companies, near bankruptcy or in bad financial condition) must offer high ROI (Return on Investment) to their investors in order for them to actually attract investors because 1. the risk of loosing all investment will be there and 2. there will be very few investors who will be willing to take the risk of loosing all their money. On the other hand, a company like lets say Microsoft will have no problem attracting people willing to invest in their programs because every knows that risk of loosing money investing in Microsoft will be low and thus Microsoft will offer low returns.

Same is the condition with Pakistan, if we want to attract investors we need to offer them high ROI which makes Pakistan quite attractive for investors. About the risk involved, if companies are willing to invest in Afghanistan and Iraq than Pakistan is MashaAllah much safer than these countries. The issue of Power is nothing new for people investing in South Asia as even India and Bangladesh have load shedding. The only thing required is that GOP takes special measures to promote its own industry and give special rebates and tariffs to support production and export in Pakistan.

 

[Jade]

Hi
what makes Pakistan a different case than India, China and other developing states is that in Pakistan there is no foreign investment at the level it is there in other states, So Pakistan has a huge potential to erect the economy. if Pakistan can get rid of problems like militancy & energy crises then Pakistan is a heaven for investment given the advantage of geographical proximity to China, CAR's, India, and above all Iran & UAE

The biggest advantage of Pakistan is its geographical location. It is between Central Asia, and South and East Asia. While Central Asia is energy rich, South and East Asia are energy hungry

 

[Hutchroy]

Pakistan slips to 112th position in terms of global trade competitiveness; In 2008, the country ranked 88th

Saturday, May 22, 2010
By Saad Hasan

KARACHI: Pakistan dropped 12 notches to 112th place in the global trade competitiveness due to high tariff, difficult customs procedures, poor transport infrastructure and deteriorating law and order, World Economic Forum (WEF) said in its 2010 survey.

This is the second consecutive year in which the country performed poorly in terms of trade facilitation and its integration with the global market mainly due to the lack of planning at the ministries of commerce and communication, WEF’s Global Enabling Trade Report 2010 revealed.

In 2009, the country stood at 100th position, while in 2008 it ranked 88th. Pakistan has been placed at the very bottom as far as security and cost of terrorism incurred by private businesses are concerned, according to the survey. It was on the 112th place in 2009 in this category.

Moin Malik, Chief Executive Officer, Agility, the leading logistic service provider, said the report reflects the government’s inability to improve transport and communication system. “I won’t say that things were very good in the previous government’s time. But at least they were focusing on the National Trade Corridor programme, which encircled logistic-related matters,” he said.

“All the stakeholders were onboard and meetings used to be held regularly. Now international observers see that nothing is happening at all. Pakistan’s downgrade was expected.”

The report evaluated a country’s performance in 56 categories, which ranged from tariff rate, airport density to business cost of crime and violence. Pakistan has a competitive disadvantage in 47 of these areas, it said.

Ameena Saiyid, President Overseas Investors Chamber of Commerce and Industry (OICCI), said that the international perception about Pakistan often remains exaggerated. “We as a nation are not good in promoting ourselves.”

She said none of 183 members of OICCI, which represent multinational companies and local corporations, have succumbed to the political and security turmoil. “Not all is bad. During last couple of years, the government has done a lot to make it easier to receive and send remittances.”

However, she said, protection of the intellectual property rights is poor in Pakistan, where piracy is rampant. “Nothing is being done to control this.”

The report put the logistics competence of the country at 108th rank, which is one of the lowest in the world, industry people said.

Babar Badat, vice president FIATA, the international federation of freight forwarders association, said the government must make policies to attract investment in the transport sector.

“We are a country of 180 million people with coastline of 1,100 kilometres,” he said. “And we donít have a single container ship and the national airline lacks dedicated freighter aircraft.”

Due to unavailability of cold storages, warehouses and poor road connectivity nearly 40 per cent of the national horticulture output was wasted. “Freight forwarders deal with seven different ministries. Why can’t there be one ministry for transport and communication?” He questioned.

The total number of trucks is 240,000, much less than the actual requirement of at least half a million vehicles, he said. “It is trade, which suffers as we continuously fail to leverage the logistics potential.”

For Full Report for the Global Competitiveness 2009-2010 from the World Economic Forum :

Click Here

 

[majesticpankaj]

For those of you fortunate (Or as in my case) unfortunate enough to have studied economics and finance, the formula is simple,

High Risk = High Return

Low Risk = Low Return

For example the companies operating in the market having a risky out look (e.g new and emerging companies, near bankruptcy or in bad financial condition) must offer high ROI (Return on Investment) to their investors in order for them to actually attract investors because 1. the risk of loosing all investment will be there and 2. there will be very few investors who will be willing to take the risk of loosing all their money. On the other hand, a company like lets say Microsoft will have no problem attracting people willing to invest in their programs because every knows that risk of loosing money investing in Microsoft will be low and thus Microsoft will offer low returns.

Same is the condition with Pakistan, if we want to attract investors we need to offer them high ROI which makes Pakistan quite attractive for investors. About the risk involved, if companies are willing to invest in Afghanistan and Iraq than Pakistan is MashaAllah much safer than these countries. The issue of Power is nothing new for people investing in South Asia as even India and Bangladesh have load shedding. The only thing required is that GOP takes special measures to promote its own industry and give special rebates and tariffs to support production and export in Pakistan.

i agreed with u on most of the point, but u missing the human element here, companies also look after their human resource. there is a significant risk there in pakistan, even the worshiping and army places r not safe. i think first thing is to ensure the safety of people only then pakistan will come out with flying colors. all the best.