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Old Thursday, April 27, 2006
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Post Investment Policies

The flow of foreign capital in the form of direct investment plays a major role in linking international economics and building an integrated international production system creating core of the global economy. A notable feature of Foreign Direct Investment (FDI) since 1990 is that it has become the largest and fastest growing single component of external finance for development countries. This represents a dramatic shift in the capital flow from developed to developing countries which was previously dominated by official assistance. During 1996, out of the total FDI of $ 310 billion at global level, the share of the developing countries has been $ 109.5 billion.

Till recently , only Manufacturing Sector has been completely opened for foreign investment - which contributes only 18% to Gross Domestic Product (GDP). While there are other major sectors which are equally productive to contribute to GDP i.e., Service Sector and Agriculture Sector, these Sectors have remained almost closed for foreign private investment. Currently the service and agriculture sectors are contributing 53% and 24% to GDP respectively. Since 1997,these sectors are also open to foreign investors.
Approaching the year 2000, Pakistan expects investment of US$ 2 billion per year, and it is hoped a large chunk will be invested in expanding the industrial base, infrastructure, software, electronics, engineering, petro-chemicals, value added textiles, agro-food and the tourism and construction industries. These areas will increase export earnings potential and stimulate economic growth. In return, Pakistan offers to remain committed to liberalization and privatization resulting in free market environment for investors and ultimately acting as a springboard to the un-explored markets in Central Asia and the Gulf States.

plz pray,
God is dead! God remains dead! And we have killed him! How shall we console ourselves, the most murderous of all murderers? The holiest and the mightiest that the world has hitherto possessed, has bled to death under our knife....
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