Salam..I was not expecting such encouraging responce for my such little effort to help the CSS aspirants.Anyhow it makes me elated. Today i am going to write how i dealt with the essays of year 2006.That time i opted for Foreigh Direct Investment in Pakistan. Here i again followed my previous method of first writing the outline of the essay and then writing the introduction containing the summary of what i am going to write in my essay on the last page of answer sheet and then refining the introduction and pasting it on the front page from where i was to start the essay. That time i got 40 marks in it.....Outline along with the structure of my essay was as follows:
(I have not studied economy throughout my educational career. My knowledge in based only on what i read from newspapers. If there is any mistake that is not to misguide anyone... just to guide others i have reproduced it here in this forum....My essay would reflect what what minimum actually FPSC demands in an essay)......

Introduction(I wrote at the end after preparing the outline)

Foreign Direct Investment in a country is an important factor in enhancing its economic growth.It reflects the economic potential and grading of that country in the eyes of international community in economic terms. Pakistan owing to its geographic location and economic performance during the last few years is being considered as a potential destinition within world communities for foreigh direct investment. As a result it has attracted FDI in defferent sectors like telecom which has not only proved fruitful for the investors but also for the consumers because of the creation of competition within the different telecom companies. But still Pakistan is not utilising its potential up to its maximum level as there are a number of factors which are discouraging the investors to come and invest here. For full utilisation of its potential at the hands of foreigh investors and for making more econoic gains such hicups should be addressed on priority bases. It will result not only in ehancing the economic development and prosperity of our beloved country but also help to improve our inernational image in economic considerations.

What potential Pakistan is having for foreign investors.
1-Emerging economy
....high GDP growth rate 8.4%(04-05),6.4%(03-04) ... Average GDP growth rate of last few years shows a stability in economy....high per capita income 736$-847$( rith now i dont remember the exact figure there may be a mistake regarding it) ...shows a huge demand for products as high purchasing power is prevalent here

2-Excellent geographic location
...situated at crossroards of S.A, C.A,M.E....products can be traded in other countries....huge demand there ..... market opportunities can be exploited here ...Gawadar port..

3- Safta.....opening up of economies....

Things not favouring FDI in pakistan(factors discouraging FDI)

1-Political instability(foreign investor take 3 to 4 years to make plan for investment and in Pakistan...uncertanity about political stability.. )
2-Power shortage
3-Water shortahe
4-Unskilled labour
5-Taxation laws......(Federal,provincial and local laws of taxation discourage Foreign investor)
6-Delayed Justice (F.I has to wait for years in cas of any dispute regarding his stakes)
7-Number of holidays (Strikes, unjustified holidays)
8-Terrorism,volatile law and order condition
9-Smuggling..(F.I buy highly taxed items while their local counterparts buy them from smugglers)
10-Deteriorated infrastrcture
11-coruption in govt. offices...where F.I interact
12-cost of business(high estate prices, high electricity rate)
13-Estranged relations with India(unsuccessful SAFTA).....Kashmir (Flash point)
14-Instability and spill over effect of Afghanistan problem (volatile FATA....(whole country is affected and under the threat of terrorism))


Impact of discouraging factors
1-Enhancing underdevelopment
2-Inflation(high purchasing capacity,shortage of demanded goods and thus inflation)...high imports
3-unemploymet leads to poverty..to...terrorism
4-Natural resources would remain unexplioted...(Gold,Coal, Copper and Other precious metals, energy resources....)



how to Attract more FDI in Pakistan(inverse the causes to make the solutions)

1-Political stability(democracy)
2-End to terrorim
3-Dams for power and water shortage.....
4-technical education to produce skilled manpower
5-reduction in taxation laws.....facilitated taxation procedure....
6-Speedy justice.....judicial reforms...
etc..etc...etc..etc

Conclusion

Foreign investment enhances the economic activity which leads to the economic growth of a country and Pakistan has a huge potential to get a lot of benefits out of it. There are a number of sectors like agriculture, dairy products, mining including the exploitation of natural resources and energy resources where the sought investment may result in huge amount of economic gains and alleviation of a number of social ills. But the need of the hour is to address above mentioned issues and hurdles so that our country could be eyed as a potential destition 4 investment and for this purpose a result oriented approach with highly dedicated efforts in an abrupt way is required.
(17pages without writing otline)