...FOREIGN DIRECT INVESTMENT IN TELECOM SECTOR OF PAKISTAN CONFIDENTIALITY STATEMENT This dissertation has been agreed as confidential between the students, university and sponsoring organisation. This agreement runs for two years from (20 August 2008) STATEMENT OF AUTHENTICITY I have read the University Regulations relating to plagiarism and certify that this dissertation is all my own work and do not contain any unacknowledged work from other sources. WORD COUNT: 16,808 ABSTRACT 07000441 FOREIGN DIRECT INVESTMENT IN TELECOM SECTOR OF PAKISTAN Keywords: FDI, Entry Modes, Determinants, Risks, Pakistan Telecom Abstract Pakistan telecom sector has attracted large inflow of foreign direct investment in recent years. Government policy of deregulation and privatization has created an environment conducive for foreign direct investment in telecom sector of Pakistan. This paper will investigate all those factors which have contributed in attracting the foreign direct investment in telecom sector of Pakistan. However, there are some risks associated with the foreign direct investment in telecom sector due to the current political instability and terrorism in the country. This paper will examine the risks associated with the foreign direct investment in telecom sector of Pakistan. Subsequently it will explore entry strategy for foreign companies to enter in Pakistan telecom market. FOREIGN DIRECT INVESTMENT IN TELECOM SECTOR OF PAKISTAN Dissertation...
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...Hadi & Co. Chartered Accountants Investment in Pakistan Investment in Pakistan An Introduction Investment in Pakistan is a publication prepared by KPMG Pakistan to provide information on a number of subjects relevant for investment planning or doing business in Pakistan. The guide includes an overview of the economy and a summary of various investment opportunities in identified sectors which could be of interest for investors. This guide provides a summary of the rules, regulations and tax laws applicable in Pakistan. Although covering many relevant areas, it should not be considered as exhaustive since it has not been designed to provide complex and detailed information required for decision-making in relation to investments. This publication incorporates the regulations effective as of 31 August 2013. For our latest publications please browse our web site; www.kpmg.com.pk. © 2013 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Glossary BOI CY FCY FDI FY GDP GoP KSE PKR SBP SECP USD Board of Investment Calendar year Foreign Currency Foreign Direct Investment Fiscal year ended 30 June Gross Domestic Product Government of Pakistan Karachi Stock Exchange Pakistan Rupee State Bank of Pakistan Securities & Exchange Commission of Pakistan United States Dollar © 2013 KPMG...
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...EFFECT OF TRADE DEFICIT ON THE ECONOMY OF PAKISTAN Mohsin Abbas Superior University, Lahore, Pakistan Hassan Raza (Corresponding author) University of Lahore, Lahore, Pakistan Abstract This study has conducted to find the effects of trade deficit on the economy of Pakistan in which trade deficit is the independent and gross domestic product, foreign direct investment exchange rate are the dependent variables. Depending on the availability of data we have selected the longest possible sample period to avoid the small sample bias. A sample period of 24 years has been selected for this study for the period of 1988-2011 with annual frequency. We use histogram, scatter plot matrix and the correlations ordinary least square method of regression has been used for the analysis.Histogramof exchange rate show rupees value against U.S dollar are continuously decrease. FDI is also not good, Gross domestic product (GDP) of the Pakistan is also very low trade,In histogram also represent the trade volume (TV) in which imports of Pakistan is very high while export is low. Scatter plot show the positive relationship dependent and independent variables except trade volume. So its result shows if the government working on these variables then trade deficit should automatically decrease like 2003 and 2004 in which our export are more as compare to import .correlation coefficient of trade deficit with gross domestic product, foreign direct investment, exchange rate has shown the moderate correlation...
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...FINANCIAL INSTITUTIONS IN PAKISTAN In financial economics, a financial institution acts as an agent that provides financial services for its clients. Financial institutions generally fall under financial regulation from a government authority. Types of Financial Institutions Common types of financial institutions in Pakistan include Banks, Investment Companies, Insurance Companies, Leasing Companies, Venture Capital & Discount Houses, Housing Finance Companies, and Mutual Funds. Bank A bank is a commercial or state institution that provides financial services, including issuing money in various forms, receiving deposits of money, lending money, and processing transactions and the creating of credit. Major players of the banking sector are categorized in the following heads: * Central Bank * Nationalized Scheduled Banks * De-Nationalized Scheduled Banks * Specialized Banks * Private Scheduled Banks * Foreign Banks * Investment Banks * Micro Finance Banks * Islamic Banks Central Bank A central bank, reserve bank or monetary authority, is an entity responsible for the monetary policy of its country or of a group of member states, such as the State Bank in Pakistan. Its primary responsibility is to maintain the stability of the national currency and money supply, but more active duties include controlling subsidized-loan interest rates, and acting as a "bailout" lender of last resort to the banking sector during times of financial...
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...Hadi & Co. Chartered Accountants Investment in Pakistan Investment in Pakistan An Introduction Investment in Pakistan is a publication prepared by KPMG Pakistan to provide information on a number of subjects relevant for investment planning or doing business in Pakistan. The guide includes an overview of the economy and a summary of various investment opportunities in identified sectors which could be of interest for investors. This guide provides a summary of the rules, regulations and tax laws applicable in Pakistan. Although covering many relevant areas, it should not be considered as exhaustive since it has not been designed to provide complex and detailed information required for decision-making in relation to investments. This publication incorporates the regulations effective as of 31 August 2013. For our latest publications please browse our web site; www.kpmg.com.pk. © 2013 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Glossary BOI CY FCY FDI FY GDP GoP KSE PKR SBP SECP USD Board of Investment Calendar year Foreign Currency Foreign Direct Investment Fiscal year ended 30 June Gross Domestic Product Government of Pakistan Karachi Stock Exchange Pakistan Rupee State Bank of Pakistan Securities & Exchange Commission of Pakistan United States Dollar © 2013 KPMG...
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...FISCAL INCENTIVES, THE COST OF CAPITAL AND FOREIGN DIRECT INVESTMENT IN PAKISTAN: A NEO-CLASSICAL APPROACH Submitted by ZAHIR SHAH Assistant professor, Government College of Commerce Mansehra, N.W.F.P A research paper submitted to Pakistan Institute of Development Economics (PIDE) to be presented in the Annual Conference 2003. FISCAL INCENTIVES, THE COST OF CAPITAL AND FOREIGN DIRECT INVESTMENT IN PAKISTAN: A NEO-CLASSICAL APPROACH1 By ZAHIR SHAH• Abstract This paper analyses the attractiveness of Foreign Direct Investment (FDI) in Pakistan with special emphasis on the cost of capital element in effecting the rate of return and the internal cash flow for investment of the investing firms. Using the Jorgenson’s Neo-classical Investment Model the cost of capital is computed after considering the taxation policy and the treatment of invested capital. The paper elaborated fiscal provisions and their implications on the investment environment specifically available to foreign investors in Pakistan. The computed results show consistent and influencing impact of the cost of capital on FDI inflows. The objective of the study is to explore the a realistic and in depth investigation of the tax concessions and the response of investors. The paper argues that fiscal incentives are more appropriate in attracting FDI as these have no direct drain over public resources and are increase the after tax return by availing the tax holidays and depreciation allowances. 1. Introduction ...
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...Core functions of SBP: 1: STATE BANK AS A BANK OF ISSUE The State Bank of Pakistan has the role right to issuenotes except subsidiary coins which are issued by the Government. The Bank adopted the Proportional Reserve System for the issue of notes upto December 1965. The level of currency banking by gold bullion, foreign securities is now fixed 1200 million through an ordinance in December 1965. This system of note issue is known as minimum Reserve System. The size ofnotes issue reflects the public demand for money. The amount of notes in circulation can be increased to meetthe public demand and are adjusted according to the general level of prices and economic activity in the country. The assets of the Issue Department are always equal to liabilities. 2: FRAMING AND OPERATION OF MONETARY POLICY: The State Bank of Pakistan frames and operators the monetary policy. Monetary policy is conducted by the State Bank of Pakistan to regulate and control the volume of money and credit supply in the country in order to achieve specific economic objectives such as price stability, reducing unemployment, etc. The main instruments of monetary policy are (i) Open market operation. (ii) Changing the reserve requirement and (iii) Changing the discount rate. 3: REGULATION AND SUPERVISION OF BANKS: The State Bank of Pakistan has full powers to supervise and control the banking system in the country. The regulatory powers relate to the licensing of banks, and their branch, expansion...
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...Illuminer, Inc. Country, Market Entry & Strategy Analysis: India & Pakistan This report has been prepared for Illuminer, Inc. a manufacturer of tablets and smartphones. Their smartphones and tablets are assembled in China and then shipped across the world. The company primarily has market share in western markets, specifically the US and across several EU countries. However, as competition is tight between smartphone and tablet manufacturers in more developed western nations, Illuminer has decided to hire KLFH, LLP to explore market potential in two countries with growing 3 and 4G networks – Pakistan and India . Both have telecom companies that have burgeoning data-capable networks and millions of subscribers that would be ripe for Illuminer’s product lines. Illuminer has also asked KLFH to specifically look at two cities for this analysis, as they would serve as test markets for their entry into the country. To this purpose, KLFH has chosen the capital of both nations, New Dehli and Islamabad, for their additional research. KLFH has completed the following country comparison and market entry and strategy analysis, detailed below. Country and City Overviews India India is a highly populous country with a population of 1.21 billion. As the world’s population increases, India still plays an important role because of the fact that India holds over 15% of the overall population in the world. India is a country that has a rather young age group with a median age of 25. Since...
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...country. A multinational corporation is also known as multinational enterprise . Businesses are always running after profits, therefore, they try to find out ways to decrease the cost as much as they can e.g. cheaper labor to bring about efficiency because it cuts cost of production. The concept of MNC’s originated from Western Europe particularly England and Holland. At that time, with the help of successful trades a lot of banks and money lending agencies emerged. Later in 17th and 18th century, companies like Hudson Bay Company, British East India Company, and French Levant Company emerged as the major multinationals at that time. The modern version of Multinationals emerged after the industrial revolution. During that time, huge foreign investment flowed from Western Europe in Asia, Africa etc. Companies started searching for countries where the labor as well as the resources was cheap and still today, when the no. of MNC’s have reached around 889450, the companies are still searching for countries where they can find much more cheap labor and other resources. A very important factor regarding the topic of MNC’s is globalization. Friedman defined globalization as: “Globalization is the inexorable integration of markets, transportation systems, and communication systems to a degree never witnessed before -- in a way that is enabling corporations, countries, and individuals to reach around the world farther, faster, deeper, and cheaper than ever before...” The relationship...
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...Pakistan Journal of Commerce and Social Sciences Vol.2 2009 Application of Endogenous Growth Model to the Economy of Pakistan: A Cointegration Approach Haider Mahmood (Corresponding Author) Research Scholar, National College of Business Administration and Economics, Lahore, Pakistan. E-mail: mic6699@gmail.com Amatul R. Chaudhary Director School of Economics, National College of Business Administration & Economics, Lahore, Pakistan Abstract During the last few decades, governments of developing countries have increasingly viewed foreign direct investment (FDIs) as a catalyst for economic growth. This study investigates the impact of FDI on economic growth of Pakistan by using Endogenous Growth Model. Out of a number of variables affecting economic growth, few have been taken into our model e.g. Foreign Direct Investment (FDI), Domestic Savings, Employed Labour Force, Capital Formation, Human Capital Index and Balance of Trade. The study examines the causality among economic Growth and all variables mentioned above over the period 1972-2005 using Johansen‟s maximum likelihood co-integration test and multivariate Granger causality test developed by Yamamoto and Toda (1995). The results of Granger causality indicated that in the short run, economic growth is caused by FDIs, domestic savings, human capital index, employed labour force and balance of trade. Keywords: Foreign Direct Investment, Economic Growth, Causality, Human Capital Index. 1. Introduction During the recent...
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...[pic] [pic] Economics Project: Exchange Rate, Balance of Payment and Trade deficit. [pic] |Topics |Page No | |Introduction |02 | |Defining |03 | |Exchange Rate, Bop & Trade Deficit | | |Pakistan Trade, Monetary Policy |04 | |Historical overview |05 To 07 | |Causes |08-11 | |Solutions |12 To 15 | |Conclusion |16 | | | | [pic] Introduction: Exchange...
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...The Pakistan Development Review 41:4 Part I (Winter 2002) pp. 319–332 The Presidential Address Regulatory Framework in Pakistan A. R. KEMAL* I. INTRODUCTIION Until the mid-1970s, governments all over the world (especially in the developing economies), intervened in markets on the pretext of market failure arising from externalities, decreasing cost industries, and equity considerations for maximising social welfare. In Pakistan, where the private sector has played a dominant role, except probably for the 1970s,1 private sector activities have all along been regulated through various types of controls and regulations on entry and exit, prices, credit, foreign exchange, imports, investments, etc. These regulations were imposed with a view to ensuring that private sector allocations were in accordance with the national priorities [see Pakistan (1983-84)]. However, the objectives were rarely realised and, in fact, these regulations have been responsible for red-tapism and corruption. On the grounds of government failure, privatisation and deregulation policies are being practised almost everywhere in the hope that they would help in efficient allocation of resources and higher levels of productivity. Considerable regulatory reforms have also been effected in Pakistan over the last two decades. Investment and import licensing have been withdrawn, most of the foreign exchange restrictions have been removed, capital market regulations have been simplified, price controls have...
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...How Exxon Mobil would manage its FDI in an emerging market Investment decisions by firms are subject to rigorous planning and coordination and when they cater to the firms’ interests in expanding its business beyond the borders of its home country, the parameters for analysis change. The company has to think beyond its own domestic construct and towards a more broad-based approach. Multinationals have to consider a completely new array of factors which range across the home country, the foreign country and even the distance in between. In today’s world of interconnectedness, FDI has been facilitated through the use of modern technology and the transferability of technology across boundaries. The global trading environment allows for investment flows across countries. While countries may be wary of imports, FDI is always welcomed as it leads to job creation within an economy and a boost to GDP. The FDI decision would itself be one needing intense planning, strategizing and thorough analysis. The factors which determine investment decisions by large firms vary across countries and it is up to the firms to determine whether the costs incurred by the variances among these parameters would be worth the price of admission. The cost benefit analysis has to be thorough given that the company is exploring new markets which could be considered a whole new world within the context of the company. Stepping out of the bounds of its own industrial and economical context and towards a global...
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...study on the franchising opportunities and the barriers to it in Pakistan A Proposal Submitted by: Faizan mujtaba malik TP027822 BA (hons).International Business Management In Partial fulfilment of requirements of the programme Bachelors of Arts in International Business Management Asia Pacific University of Technology and Innovation 06-11-2013 Abstract Recently countries over the world have been in a very fast economic development race with the most modern and appropriate strategies and technologies. However, franchising has been of the most successful and useful strategies that helped in the development and improvement of countries. On the other hand Pakistan is one of the developing countries that suffer from the lack of such strategies and technologies that would play the role in the economic development of the country. This report provides an overview of franchising strategy with its advantages and drawbacks. Moreover the report is about the market in Pakistan and provides a much clear image of the environmental factors and current situation in the country. The aim of research is to study the opportunities of franchising in Pakistan as well as the challenges that organizations face in the market of Pakistan specially in franchising. The research focuses on the environmental factors, political and social and cultural factors and its impact on the franchising market in Pakistan. The report also focuses on how technology and infrastructure can...
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...marketing plan for launching Sephora in Pakistan. The background gives a brief insight of the company, the product and the foreign market chosen. The environmental analysis, to justify the foreign country, offers perspective across the Economic and Financial, Cultural, Political and Legal (PESTLE) elements that will affect the organization. A SWOT analysis has also been conducted to better exhibit the more holistic overall implications of Sephora investing in Pakistan. The “limitations” of this report include a limited word count and certain primary resource constraints. A summarized version of all external environmental elements has been formulated, analyzing their potential marketing implications for Sephora to overcome these constraints. Several graphs and tables are added to rationalize necessary investment decisions and illustrate key facts and findings that reinforce the merits for Sephora penetrating the market. It is essential to underscore that the rationale for launching Sephora in Pakistan are multifold. Pakistan is home to favorably high-density demographics with a consumer base of 180 million and growing which should not be ignored by any MNC or international brand seeking alpha-growth over the coming years. With increasing globalization, media liberalization and rapid urbanization, Pakistani citizens are becoming ever-more brand-conscious and quality-savvy. Sephora should grant a Master Franchise License for Pakistan as it is witnessing a rapidly rising...
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