Pakistan: Slump in foreign investment

[kak1978]

Indian Politicians are wise and have made room for local companies always...But Pakistani politicians are dumb they buy stakes in Foreign franchises and let them rule the local market.....No Pakistani car company could ever survive a few years because foreign companies are too big for them to handle..But in India Tata was officially saved and you see the results..where is Tata now.
We in UK sometimes get taunted that we are draining away British wealth to Pakistan..But just one British company Shell oil has yearly profits of over 2 Billion pounds from Pakistan.
Same goes for Pfizer,ICI,Wyeth,Suzuki,Toyota,Lever Brothers and the list goes on...
If these companies are banished from Pakistan i am sure there will be many local companies who will have chance to grow their business.

It is not that simple. Foreign companies don't just bring in $$, they bring in technology and expertise and that will in turn nurture the local industry. FDI also enables joint ventures, where the foreign company provides the know how and the local companies provides the resources. Indian domestic auto manufacturers wouldn't have been where they are right now without the investment from foreign companies.

Sadly some of the politicians in India also don't get this. Allowing FDI in retail will being in efficient supply chains that will inturn reduce the supply and distribution problem.

 

[illusion8]

Indian Politicians are wise and have made room for local companies always...But Pakistani politicians are dumb they buy stakes in Foreign franchises and let them rule the local market.....No Pakistani car company could ever survive a few years because foreign companies are too big for them to handle..But in India Tata was officially saved and you see the results..where is Tata now.
We in UK sometimes get taunted that we are draining away British wealth to Pakistan..But just one British company Shell oil has yearly profits of over 2 Billion pounds from Pakistan.
Same goes for Pfizer,ICI,Wyeth,Suzuki,Toyota,Lever Brothers and the list goes on...
If these companies are banished from Pakistan i am sure there will be many local companies who will have chance to grow their business.

Thats bull, Shell Pakistan posted a profit of PKR 905 Million in 2011. How much British Pounds is that?

 

[Safriz]

It is not that simple. Foreign companies don't just bring in $$, they bring in technology and expertise and that will in turn nurture the local industry. FDI also enables joint ventures, where the foreign company provides the know how and the local companies provides the resources. Indian domestic auto manufacturers wouldn't have been where they are right now without the investment from foreign companies.

In 40 years of Toyota and Suzuki working in Pakistan they haven't brought ant technology..Only an assembly plant with all the parts made abroad..So even that doesn't work for Pakistan.

Thats bull, Shell Pakistan posted a profit of PKR 905 Million 2011. How much British Pounds is that?

No that isn't bulll...950 million for an oil company that owns every other Pump in Pakistan is nothing

 

[illusion8]

In 40 years of Toyota and Suzuki working in Pakistan they haven't brought ant technology..Only an assembly plant with all the parts made abroad..So even that doesn't work for Pakistan.


No that isn't bulll...950 million for an oil company that owns every other Pump in Pakistan is nothing

What do you mean by that? the profit share is just 6.31 million pounds not 2 Billion.

http://www.economyage.com/2012/03/s...e-in-profits-with-rs-247-billion-in-revenues/

 

[Safriz]

The link you posted also says

"Shell Pakistan, which represents all aspects of the upstream and downstream oil business in Pakistan – in exploration both onshore and offshore, in refining, as well as a 26% share holding in the white oil pipeline, posted a profit of Rs. 905 Million this year, down from Rs. 1.6 Billion in 2010."


So a company which holds such large stakes in Pakistan....makes a measly 1.4 million ?
Not your fault,as the link says this but ridiculous.

 

[MilSpec]

what garbage?
where did "Economics 101 at madrassah zia ul haqe.." come from?

although its offensive, it funny when a pakistani says it to another pakistani, it has a funny click to it

 

[Safriz]

although its offensive, it funny when a pakistani says it to another pakistani, it has a funny click to it

There are nutters in all nationalities..Pakistanis included.Nothing unusual.

 

[illusion8]

The link you posted also says

"Shell Pakistan, which represents all aspects of the upstream and downstream oil business in Pakistan – in exploration both onshore and offshore, in refining, as well as a 26% share holding in the white oil pipeline, posted a profit of Rs. 905 Million this year, down from Rs. 1.6 Billion in 2010."


So a company which holds such large stakes in Pakistan....makes a measly 1.4 million ?
Not your fault,as the link says this but ridiculous.

The link explains the reasons for loss in revenue as well.

 

[BATMAN]

Local industry and investors are systematically targeted by Pakistan govt. and giving undue advantage to Indian traders.

 

[Zeeshan360]

@Batman

What are U trying to say ??

 

[DGMO]

The country is going down the toilet on so many fronts, one has to look at all the various economic indicators. FDI has been an issue, but how can you tackle it when the environment in which you operate is not conducive to business?

Lack of electricity and gas, corruption, the spectre of default, a mismanaged economy, lack of leadership, weak governance, law and order instability - so many factors and more hinder the prospect of investment.

All the while the government cooks up ideas like printing more currency, and lavish expenditure continues etc. The country isn't positioned well for FDI. We're a begging bowl of a nation, and as somebozo mentioned, as a Pakistani I personally wouldn't invest in Pakistan, so how can we expect FDI?

It hasn't dawned on many just how bad the economic situation is, all because of the 4.5 years of this government. It's time to cash your cheques and run, the country is a mess.

I've given up hope with the PPP in charge, I'm sure others have as well.

 

[Backbencher]

I feel pakistans future will be secured once Imran Khan comes to power . Not only will the foreign Pakistanis will invest but u may expect heavy invests from countries such as india , iran , bd etc .
So my dear friends relax and appoint IK in the upcoming election . Hope for the best guys.........

 

[Abingdonboy]

My uncle's company did a lot of work in Paksitan 3-4 yeas ago but has since pulled out due to security issues. The security issues made it uneconomical to do business in Paksitan anymore. Sad as he said he had actually found it easier in early 2000s to do business in Pakistan than in India. He has now shifted to India and says protectionist and barriers to entry have been removed hugely so India isn't so bad anymore. This is just one small (very small) case but I'd dare say it reflected the wider situation pretty well.

 

[Night_Raven]

Specially if the big multinationals go away,that will be better for local companies..will make space for them...

MNCs bring in competition , quality , scale , best practices , jobs ... just because FDI is down doesnt mean you guys dont need it

 

[DGMO]

MNCs bring in competition , quality , scale , best practices , jobs ... just because FDI is down doesnt mean you guys dont need it

It's incredible that this view can manifest itself in people, we're desperate for FDI, for growth and for helping the jobless and dealing with the brain drain.