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Is Pakistan Good For Business | Why to Invest In Pakistan

by Arifa Rana

As the second-largest market in the area, Pakistan is located in South Asia Over and above that, a low level of competition and a fast-growing economy are only a few of the advantages. In spite of its vastness, however, the country is still largely unknown to global firms and investors. Whenever investing in a developing market, there are always dangers, just as there are in any other market. However, the dangers can be reduced.

Few reasons that why one should invest in Pakistan are elaborated under:

1-Geo-strategic Location

Geographically positioned between India and China, Pakistan has the potential to become Asia’s top commercial. It also serves as a gateway to the power full Central Asian states, the financially stable Gulf States, and the industrially prosperous Far Eastern tigers. As a result of this competitive edge alone, Pakistan is a market overflowing

2-Workforce and population:

Fifty-five percent of our inhabitants are under the age of 19, indicating a positive outlook for long-term sustained economic development. Pakistan has a substantial middle class. A sizable proportion of the workforce is fluent in English, industrious, and bright. Pakistan has a huge pool of well-trained and experienced engineers, bankers, attorneys, and other experts, many of whom have extensive international expertise. The consumer market in Pakistan is expanding at a rapid rate, as seen by teledensity, which has already surpassed 150 million.

3-Economic Prospects:

During the global financial crisis, Pakistan’s economy demonstrated endurance to disruptions, retained global and regional trends, and outperformed several surrounding countries. According to reputable international reports, Pakistan ranks ahead of regional countries.

4-Special Economic Zones (SEZ):

The Law on Special Economic Zones is enacting in response to global competitiveness issues in order to attract FDI. The law provides for the establishment of industrial clusters with liberal subsidies, facilities, and investor facilitation services. It is in order to boost productivity and lower the cost of doing business in order to promote economic growth and poverty alleviation. In addition, the law envisions decreasing procedures in Pakistan through SEZs.

5-Investment Policy:

This Policy was created to provide a thorough framework for building a suitable business climate for FDI attraction. Pakistan’s policy tendencies have remained constant, with reform, deregulation, restructuring, and liberalization serving as key pillars.

6-GDP growth

Pakistan’s economy has witnessed significant GDP development. Textiles, clothing, agriculture, and building materials are among the key industries contributing to this expansion. Furthermore, Pakistan is one of the world’s Next Eleven (N-11) countries. These nations, as per Goldman Sachs Inc., have the capability to be the next world’s greatest economy in the twenty-first century.

7-Rising population:

Pakistan’s population exceeds 200 million people. It is the world’s sixth most populated country. Moreover, Pakistan’s demographic is quickly increasing, with a projected population of 300 million by 2050. Consider the prospects for established industries that Pakistan’s economy will provide in the future

8-Labor costs are competitive:

In Pakistan, the minimum wage for unskilled workers is now about Rs. 15,000 ($125) per month. These are the employees who lack technological training and skills. Maids, fast restaurant or retail employees, and janitors are among the examples. High-skilled professionals, on the other hand, get an average monthly salary of Rs. 41,100 ($339). These employees have received specific training and have a skill set that allows them to execute their responsibilities. Technicians, electricians, experts, and so forth. Wages in Pakistan stay low in comparison to neighboring countries such as India and China.

9-The rise of the working class:

Pakistan’s working class is expanding in tandem with the country’s economy. Pakistan’s working class is currently estimated to number more than 80 million individuals – a sizable amount when compared to the people of Germany alone. Furthermore, the working class is anticipated to outnumber that of Italy and the United Kingdom. Moreover, Pakistan has emerged as one of the world’s fastest expanding retail marketplaces. According to Euro monitor, its major retailers are anticipated to increase by up to 50%. A stronger security situation is one factor that encourages customers to spend.

10-Improving infrastructure

Consequently, the government acknowledges the need of upgrading and extending Pakistan’s infrastructure services. This promotes economic and social growth. To improve the business climate in Pakistan, the government is aggressively working to overcome infrastructural shortages. For example, through supporting Public-Private Partnership (PPP), which involves the upkeep and funding of several strategic industries. Such as Mass Urban Public Transportation, Freight forwarding, Commercial, and Community Projects. Pakistan is also a participant in the China-Pakistan Economic Corridor (CPEC), a network of infrastructure improvements aimed at improving connections between China and Pakistan.

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