Pakistan is a land of many splendors and opportunities, a unique blend of history and culture from the East and the West. Growth has been underpinned in Pakistan by economic liberalization, deregulation, financial and capital market reforms and privatization along with wide scale investment in the infrastructure by the Government.
World Foreign Direct Investment (FDI) flows fell moderately in 2008 following a five-year period of uninterrupted growth, in large part as a result of the global economic and financial crisis. While developed economies were initially those most affected, the decline has now spread to developing countries, with inward investment in most developed countries falling in 2009 too. The decline poses challenges for many developing countries including Pakistan, as FDI has become their largest source of external financing. Global FDI flows have dropped in 2009 by nearly two fifths last year, with both rich and poor countries suffering a drop in funds. Flows of Foreign Direct investment (FDI) on which many developing countries rely for growth could start to grow again this year as the economic recovery takes hold.
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In order to capitalize on its strategic location, Pakistan has adopted a liberal investor friendly policy, broad features of which include, proactive facilitation and guarantees of equal treatment of both local and foreign investors, easy tariff structures and a liberal regime on repatriation of profits.
The country is facing severe energy crisis this year and the Government has accorded Power sector top priority for investment and is taking all necessary measures to build a more conducive environment by simplifying procedures to facilitate the potential investors.
There is vast untapped potential in other sectors like horticulture, dairy, construction, infrastructure development, manufacturing and tourism can also prove highly profitable for any prospective investor.
Board of Investment