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What should Pakistan do to attract more investment? Arm chair comments also welcome!

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    What should Pakistan do to attract more investment? Arm chair comments also welcome!

    I think Pakistan needs a totally new strategy and a complete overhaul of its system to get out of this mess.

    Not long ago, India was reeling under same conditions, but bold steps and complete re-orientation of its policies brought in a lot of investment.

    Anybody got more comments?

    Foreign investment declines by 74%

    Source: By Khaleeq Kiani, Dawn

    ISLAMABAD, April 27: The inflow of foreign investment in Pakistan has declined by a drastic 74 per cent during the first nine months (July-March) of the current fiscal year.

    Total foreign investment in the first nine months has touched a 10-year low of $104 million compared with $393 million same period last year, State Bank of Pakistan (SBP) figures revealed.

    The foreign direct investment (FDI) that amounted to $232 million in the first nine months, 36 per cent lower than $360 million same period last year, was further reduced due to $128 million outflow of portfolio investment. The stock market had attracted $32 million during the first nine months of the last fiscal year but this year $128 million worth of outflow took place.

    There was no new public offering in the stock market and foreign investors offloaded their investments in the existing scrip due to unstable political and economic situation in the country. This is in contrast to the official claims that investor confidence has improved and investment climate revived during the last one year.

    The Board of Investment (BOI) has decided not to disclose overall investment figures recorded by the SBP in view of the dismal performance of the investment sector, official sources told Dawn.



    #2
    Ah nothing new in that.
    The US is going through a slump, all FDI should dry up.
    Europe has very little FDI in the third world.
    It is mainly US.
    Second we are a targetted country for no investment.
    It is expected and should change with a democractic and stable govt.
    FDI is directly related to political stability and the international image.

    ------------------
    CROIRE A L'INCROYABLE

    I Came I Saw I ATE
    You can't fix stupid. So might as well troll them!

    Comment


      #3
      CM,

      I have noticed that your cold (deaf and dumb) attitude on most vital issues, which direct affect the very existence of Pakistan, is astonishing. I wonder which side are you? I hope you are not double cross like many so called patriots on this forum. Your dumb remarks on the subject remind me 1971. People like you behaving exactly the same way though nothing was going to happen and Pakistan was going to win the war. Then suddenly, news of surrender of 95000 soldiers, came as a bombshell. . I hope people should not listen to your crape.

      FARID

      Comment


        #4
        Farid, you are fixated on 1971.
        And as for my comments being cold, they are realistic.
        There is no way FDI is going to increase in Pakistan due to our image and economic conditions around the world.
        Interestingly i have noticed you have left the land lord issue alone.
        And for once in your life will you stick to the issue and not 1971.

        ------------------
        CROIRE A L'INCROYABLE

        I Came I Saw I ATE
        You can't fix stupid. So might as well troll them!

        Comment


          #5
          CM,

          I am Pakistani and I have seen very good time when East and West Pakistan were one. As I already said your cold attitude even after breakup of the country is surprising. Perhaps you do not know what moral and spiritual damage was inflicted when Pakistan was disintegrated. This tragedy will haunt forever. If you are a true Pakistani, then consider breakup as a major tragedy in the Muslim History, particularly the history of Pakistan and do not take it lightly.

          FARID

          Comment


            #6
            Farid please live in the present.
            So you want to discuss the topic with warmth so be it.
            IMO Pakistan needs a complete overhaul of its infrastructure.
            Roads need to be built proper and that should last a long time.
            The water shortage should be cleared up.
            Rail and road infrastructure should be better handled.
            All the main centers both economic and political should be linked by road and rail.
            That means you can go from Karachi to Quetta to lahore and back to karachi by road and rail for an example.
            Basic facilities like water gas and electricity should be provided to the major centers as well as the new up coming ones.
            There should be a strong infrastructure base before any economic activity can be positively implemented.
            Is that constructive enough Farid??

            ------------------
            CROIRE A L'INCROYABLE

            I Came I Saw I ATE
            You can't fix stupid. So might as well troll them!

            Comment


              #7
              CM,

              I am very much living in present. And Allah has given me the faculty of vision and thinking to roughly estimate what would be the shape of the country in the coming decade. I tell you and
              keep this as record for your memory, things would be worst than now after 10 years, had people who stewarding the direction of county, not changed. Continuation of failure and outdated thinking (like yours) will not make life easy for common man in Pakistan. I can visualize the complete change in geography of the country, if things do not take U-turn from present situation. I am not like you who practice past and outdated theories and apply in present situation. Do not accept miracles. Your, above suggestions need money. If the investors are shy in investing, IMF and World Bank continue to threaten for loans and repayments, tell me how will you achieve the objectives mentioned above. Perhaps you are living in fools paradise. Wake up and feel the reality. Situation is worse than two years ago. Unfortunately graph of progress is following steep negative gradient and is going down and down.


              FARID

              Comment


                #8
                Originally posted by CM:
                Farid please live in the present.
                So you want to discuss the topic with warmth so be it.
                IMO Pakistan needs a complete overhaul of its infrastructure.
                Roads need to be built proper and that should last a long time.
                The water shortage should be cleared up.
                Rail and road infrastructure should be better handled.
                All the main centers both economic and political should be linked by road and rail.
                That means you can go from Karachi to Quetta to lahore and back to karachi by road and rail for an example.
                Basic facilities like water gas and electricity should be provided to the major centers as well as the new up coming ones.
                There should be a strong infrastructure base before any economic activity can be positively implemented.
                Is that constructive enough Farid??


                I disagree CM. One does not have to have modern or stable infrastructure to improve their fiscal position. Fiscal management calls for prioritizing expenditures that give the best value for the revenues generated. Spending on arms while education goes down the tubes is not a fiscally strong strategy. Pakistan invested in such hairbrained schemes and is now paying for the ill-dividends.

                Corrupt politicians can only siphon off only fractions of the cumulative GNP. Mismanagement is the basic reason. If the populace can't declare productivity gains in lahore, what difference will it make in Quetta. Plus project financing for infrastucture (roads, telecom, etc.) from World Bank and ADB types depends on the ability of the loanee to manage the funds properly.

                Just my $.02!

                Comment


                  #9
                  Farid you ever make sense???

                  True fiscal management is quite different from the infrastructure scenerio i had in mind.
                  But i was saying that for pakistan to develop we need a strong infrastructure.
                  With a strong infrastructrue the fiscal management would be given a break.
                  As for corruption, that is a bottomless abyss that needs a swift and strong hand to get rid of.

                  ------------------
                  CROIRE A L'INCROYABLE

                  I Came I Saw I ATE
                  You can't fix stupid. So might as well troll them!

                  Comment


                    #10
                    Pakistan should spend most of it's resource, time and money by spreading hatred against India. Pakistan should not adopt new western technology which is against islamic law. Pakistan should abandon technology and should live in stone age. Whatever is against islam should be banned. There should not be TV, videos, theatres, cars, buses, trains, plains, ships, bi-cycles, jeans or modern clothes. Peoples should cover their body with leaves and carry bows and arrows to fight against India. All the peoples of Pakistan should be part of Army they should just think about army, everything that they own should be part of Govt. Nobody should make any kind of profit, all the banks should give loans interest free, stock market trading is not good too.

                    Comment


                      #11
                      Originally posted by CM:
                      Farid you ever make sense???

                      True fiscal management is quite different from the infrastructure scenerio i had in mind.
                      But i was saying that for pakistan to develop we need a strong infrastructure.
                      With a strong infrastructrue the fiscal management would be given a break.
                      As for corruption, that is a bottomless abyss that needs a swift and strong hand to get rid of.


                      How is Pakistan going to pay for the strong infrastructure?

                      Once fiscally sound, the investment grade ratings will improve and FDI will come in thereby getting funds for infrastructure projects like roads and telecom. Your assertion is the stupidest thing I have heard in a long time regarding development economics. Why do you think the IMF. ADB and WB attach such strict conditions to lending? Because fiscal mismanagement is what is keeping countries like Pakistan back. Corruption is everywhere, but the numbers are miniscule when compared to lack of prioritization of initiatives and misappropriation of funds by the mullah's and military buffoons.

                      Comment


                        #12
                        Thanks infoman. That would have been my reply for CM

                        CM,

                        Any more of your pathetic comments! I tell you a latifa, joke. Once there was a poor old man having a daughter. One day there was nothing to eat for the day. He asked her daughter to make him one ‘roti’ as he was very hungry. The daughter replied that there was no flour left to make ‘roti’. Poor father then asked her to make him a ‘double roti’. You are behaving exactly like this poor man!

                        FARID


                        [This message has been edited by Farid (edited May 13, 2001).]

                        Comment


                          #13
                          Pakistan’ need is democracy and stable govt. Is it possible in the mess of Islamic dogmas and the most corrupt bureaucracy and political leadership?
                          If I am not mistaken Islam and corruption are antagonist.

                          Indian bureaucracy is also corrupt but without any religious dogmas. This is a great reason for a success of democracy.

                          And let Pakistan stop breathing in the shadow of India!

                          Comment


                            #14
                            Exams week so i was off.
                            Now to reply to your answer.
                            We are dealing directly with FDI.
                            FDI comes into a country due to a stable govt and a great deal of infrastructure.
                            Lets play it from the FDI point of view.

                            If you are a MNC, you look at a couple of things when you want to set up in a country.
                            Raw material resources.
                            Transportation cost - one of the major costs
                            Production cost - wages, utilities etc.
                            Market.
                            An example is Union Carbide which set up in India.
                            They liked bhopal, as it had a rail and road network, workers near by - the city - and the lake.
                            If pakistan does not have a viable infrastructure, do you really think the MNC's would be willing to invest in pakistan.
                            The objective is to make profit, and not make roads and other infrastructure for its own need.
                            MNC's look in the short term to invest, not in the long term.
                            Short term in this case would be 30 to 40 years.
                            They usually move when they find a cheaper better place.
                            They look for a place where they can use the existing infrastructure to their own benefit.
                            These days a country can't develop on its own, it needs FDI.
                            Pakistan needs to attract this FDI to develop.
                            Having a strong fiscal establishment won't help getting the FDI.
                            As for your comment on the IMF and WB.
                            The WB provides loans to projects and not on for the fiscal development of the nation.
                            While the IMF does, however if you pay attention to the lastest events, the IMF is shifting back to is stance before the 90's where it was not responsible for the economies of nations.
                            There loans are not again are not wholly based on fiscal management.
                            In Pakistan the only thing to do with purely fiscal management is the tax collection.

                            And Farid, if you can't say anything intelligent i suggest you keep quiet.

                            ------------------
                            CROIRE A L'INCROYABLE

                            I Came I Saw I ATE
                            You can't fix stupid. So might as well troll them!

                            Comment


                              #15
                              Whoops forgot 1 point.
                              You asked where we can get this money.
                              The WB still does provide money for infrastructure development, it has been doing so in Ghana for example.

                              ------------------
                              CROIRE A L'INCROYABLE

                              I Came I Saw I ATE
                              You can't fix stupid. So might as well troll them!

                              Comment

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