KARACHI: The inflow of foreign direct investment (FDI) has remained low in Pakistan when compared with some of the emerging economies in the South Asian region, especially Bangladesh, which shares a number of similarities with Pakistan.
A recent report released by the State Bank of Pakistan, while citing data from the IMF World Economic Outlook, said that FDI inflows to developing economies are expected to recover strongly from $280 billion in 2009 to $364 billion in 2011.
This is true for Bangladesh where the inflow of foreign investment in the various economic sectors accelerating sharply, the SBP report said.
However, in contrast, foreign investment in Pakistan has been falling persistently due to number of domestic factors such as energy shortages, macroeconomic instability and law and order situation.
The ongoing war on terror has also putting negative impacts on FDI inflows which is evident from the fact that the business cost of terrorism is very high in Pakistan, the second worst in the world after Somalia, it said.
A sector and source-wise comparative break-up on FDI during the last 15 years indicated that Pakistan and Bangladesh were almost same in terms of attracting FDI flows to their respective countries. But it is now on declining trend for the past few years on account of political instability, bureaucratic hurdles and weak infrastructural policies, it said.
According to the report, telecom, petroleum, power, oil and gas, and financial business were the sectors recorded substantial FDI growth in both countries over the last 15 years. The share of telecom sector in FDI witnessed a growth of 28.8 percent in Bangladesh and 27.6 percent in Pakistan. FDI in petroleum and oil and gas stood at 24.8 percent in Bangladesh and 24.6 percent in Pakistan. The financial sector of Pakistan showed 18.5 percent growth in FDI while it recorded at 7 percent in Bangladesh during the last 15 years, the report said.
Pakistan is lagging its counterpart in terms of competitiveness caused by weak macroeconomic environment, said World Economic Forums Global Competitiveness report 2011-12. The report said Pakistan stands at 138th position out of 142 countries. Bangladesh stands at 75th position. Similarly, the overall ranking of Bangladesh is 108 while Pakistan is at 118th position. Fiscal discipline, inflation, interest rate spread and country credit rating is one of the worst in Pakistan, the report added.
Pakistan lags behind Bangladesh in attracting FDI - thenews.com.pk
Bangladesh has Left Behind Pakistan in Most of the Sectors.
A recent report released by the State Bank of Pakistan, while citing data from the IMF World Economic Outlook, said that FDI inflows to developing economies are expected to recover strongly from $280 billion in 2009 to $364 billion in 2011.
This is true for Bangladesh where the inflow of foreign investment in the various economic sectors accelerating sharply, the SBP report said.
However, in contrast, foreign investment in Pakistan has been falling persistently due to number of domestic factors such as energy shortages, macroeconomic instability and law and order situation.
The ongoing war on terror has also putting negative impacts on FDI inflows which is evident from the fact that the business cost of terrorism is very high in Pakistan, the second worst in the world after Somalia, it said.
A sector and source-wise comparative break-up on FDI during the last 15 years indicated that Pakistan and Bangladesh were almost same in terms of attracting FDI flows to their respective countries. But it is now on declining trend for the past few years on account of political instability, bureaucratic hurdles and weak infrastructural policies, it said.
According to the report, telecom, petroleum, power, oil and gas, and financial business were the sectors recorded substantial FDI growth in both countries over the last 15 years. The share of telecom sector in FDI witnessed a growth of 28.8 percent in Bangladesh and 27.6 percent in Pakistan. FDI in petroleum and oil and gas stood at 24.8 percent in Bangladesh and 24.6 percent in Pakistan. The financial sector of Pakistan showed 18.5 percent growth in FDI while it recorded at 7 percent in Bangladesh during the last 15 years, the report said.
Pakistan is lagging its counterpart in terms of competitiveness caused by weak macroeconomic environment, said World Economic Forums Global Competitiveness report 2011-12. The report said Pakistan stands at 138th position out of 142 countries. Bangladesh stands at 75th position. Similarly, the overall ranking of Bangladesh is 108 while Pakistan is at 118th position. Fiscal discipline, inflation, interest rate spread and country credit rating is one of the worst in Pakistan, the report added.
Pakistan lags behind Bangladesh in attracting FDI - thenews.com.pk
Bangladesh has Left Behind Pakistan in Most of the Sectors.
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