...The Investment Climate and Enterprise Performance in Rural Pakistan: Implications for Rural Non-farm Employment Generation and Poverty Reduction Mona Sur South Asia Agriculture and Rural Development Department World Bank msur@worldbank.org & Jian Zhang Department of Agricultural and Resource Economics University of California-Davis jian@primal.ucdavis.edu Selected Paper prepared for presentation at the American Agricultural Economics Association Annual Meeting, Long Beach, California, July 23-26, 2006 Copyright 2006 by Mona Sur & Jian Zhang. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies. The views presented in this paper are those of the authors. The findings, interpretations, and conclusions expressed herein do not reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. The Investment Climate and Enterprise Performance in Rural Pakistan: Implications for Rural Non-farm Employment Generation and Poverty Reduction Agricultural growth remains an important pathway out of poverty in rural Pakistan, but given that 60 percent of the country’s rural poor are landless, and primarily reliant on non-agricultural activities as their main source of income and employment, it is increasingly recognized that a well developed and well-functioning rural non-farm sector is essential for generating employment, ensuring...
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...Introduction Investment Climate means the general economic conditions affecting the financial markets. A favorable investment climate encourages businesses to improve efficiency and productivity in order to increase revenues and capital available for investment. It also gives investors confidence in the market and encourages them to invest more capital. Investment Climate The investment climate in a country is the collective set of incentives which establish the “rules of the game” to which economic actors must adhere. Set by a wide variety of sources, including government policies, cultures of public administration, and institutional, social, and physical infrastructure, the investment climate determines the level and uncertainty of returns expected by economic agents and consequently impacts the quality and quantity of investment and the incentives to productively employ inputs. The investment climate can be broken down into the following three main areas: (1) Macroeconomic and Trade Policy - The capacity of domestic institutions and economic policy (e.g. fiscal, monetary, trade, and exchange rate policy, administration of customs and ports, security of property rights, strength of rule of law, and political stability) to reduce costs of international trade and finance and ensure a consistent and non-distortionary basis for investment, production and exchange; (2) Microeconomic Framework - The contribution of microeconomic regulation (e.g. rules governing...
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...supplies, while protecting the environment in which its products are grown and processed. This research would help to identify the reasons of problems in export that causing loss, by analyzing the responses of different exporters and employees working in export companies. This research would facilitate by providing solutions and recommendations to cover the issues faced by export companies. * Problem identification Pakistan is one of the important countries in exporting their goods and products to different parts of the world around. Due to social and political constraints it is facing various issues in export processes that are affecting the market share in business.At a time when many developing countries are rapidly expanding their exports, Pakistan continues to struggle to accelerate the export of manufactured goods. It is generally believed that the country’s exports are not competitive in international markets and that Pakistan is, therefore, unable to expand its market share. In particular, firms often complain of the lack of an investment-conducive...
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...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 of...
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...meet the country’s energy needs. The paper argues that energy planning should integrate the external cost of energy use in deciding about the composition of supply: coal, oil, gas, hydropower, renewable, nuclear, and solar. By utilizing external cost estimates made by the European Commission for Europe, and the US National Academy of Sciences, a total cost (external + internal) ranking of primary energy sources for Pakistan is estimated. This estimate is at the low end of the cost spectrum because classic pollutants—sulfur dioxide, nitrogen oxides, carbon monoxide—in Pakistan are significantly higher than in Europe or the US. The paper also discusses the experiences of China and OECD countries in increasing energy-wide efficiency. A central lesson emerging from the analysis is that Pakistan will have to significantly increase its energy-related research and development expenditure in order to adequately address its energy sector issues. A quadrupling from 0.25 % of gross domestic product is recommended over a decade. Keywords: Energy, policy, environment, Pakistan. JEL Classification: Q48, Q47, Q5. I. Introduction Energy is the life blood of socioeconomic development. It is essential for technological applications that promote productivity increases. The three domains where energy is used are the production of electricity, the extraction/generation of thermal energy (heating and cooling), and transportation. During the past two centuries, fossil fuels (coal, oil, and...
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...Pakistan is not out of the woods By Abdul Khaliq (CADTM Pakistan) Almost a year ago in August 2008, Pakistan was at the brink of default. Its foreign exchange reserves were hitting the bottom rock of $4 billion, depleting rapidly in the range of $250 to $330 million weekly, which were hardly sufficient to fulfill requirements of one month of imports. Pakistan’s sovereign debt and liabilities were the riskiest, which had crossed the $45 billion mark. Pak rupee had depreciated to 23 per cent. The gap between balance of trade was widening to the alarming extent. Poor law and order situation was scaring away the investors. Financial analysts were predicting Pakistan teetering on the edge of solvency, terming the situation as a natural consequence of Pakistan’s support to US-led war on terrorism. It was a tough time for a new PPP government. With begging bowl, Pakistan was imploring before Saudi Arabia and China to escape the impending default, but it could get nothing substantial. Finding no other option the desperate Pakistan decided to knock the IMF door. Despite strong opposition from many in Pakistan, the government finally entered into $7.6 billion Stand By Arrangement (SBA) loan with the Fund in November 08. A recent report by The Economist (April 23rd 2009) “Full Fear and Credit: Pakistan’s Political instability brings macroeconomic calm” claims that Pakistan has unique exemption from ill effects of the global contraction and under IMF program it has only...
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...section we will discuss different industrialization trend effects on GDP. ⦁ 1947-50 ⦁ At the time of participation out of 955 industries Pakistan got only 34 industries the rest were located in India. Pakistan got only small scale industries .In 1947 suggested that for growth and development of country there were need to establish new industries for that purpose Govt. establish industrial finance corporation& industrial credit corporation in1948 at that time investor invest in these industries which show the highest profit. The contribution in GDP 6.9% ⦁ 1950s ⦁ In1960s there were shifted consumer goods industries to heavy machines such as steel, petro chemical steel. The industrial performance in...
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...30,000. Telenor started out as a public company in 1855 and builds on more than 155 years of telecom experience. A Telenor is a global company it is always looking to expand in to untapped markets or where oppuruntities are available for expansion. Telenor acquired a license for providing GSM services in Pakistan in April 2004, and launched its services commercially in Karachi, Islamabad, and Rawalpindi on 15 March 2005; it expanded its services to Lahore, Faisalabad and Hyderabad on 23 March 2005. Telenor Pakistan’s Corporate Headquarters are in Karachi, with regional offices in Peshawar, Lahore, Faisalabad, Multan, Hyderabad and Islamabad. On 28 January 2005, Telenor established its first call centre in Karachi. TELENOR TOOK ADVANTAGE OF GRADUATES IN KARACHI BY OPENING ITS CALL CENTRE IN A CITY WITH HIGH LEVEL OF GRADUATES. As of January 2012, Telenor Pakistan had a reported subscriber base of 28.47 million, and a SIM market share of 24%. On October 2012, Telenor officially declared to have the customer base of 30 million. Competitors Its main competitors are Warid (UAE), Mobilink (Egypt), Zong (China), Ufone (PTCL/UAE). All these companies are foreign investments; excluding Ufone which is part owned by PTCL. Telenor’s advantage over its competitors is gained by offering consumers greater value than competitors. Telenor strategy is to gain more and more competitive advantages. It also uses these competitive advantages well enough for its promotions. Currently Telenor...
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...Bangladesh: An Emerging Destination For Foreign Economy 1-10 3. Foreign Investment Opportunities 10-13 4. Current Situation Of Foreign Investment In Bangladesh: 13-19 5. Foreign Investment Trends In Bangladesh 20-34 6. Why Should Foreign Investors Invest In Bangladesh 35-39 7. How Can Our Government Come Forward To Attract Foreign Investors 39-46 8. Recommendation 47 9. Conclusion 48 10 References 48 INTRODUCTION: Bangladesh is now trying to establish itself as the next rising star in South Asia for foreign investment. The government has implemented a number of policy reforms designed to create a more open and competitive climate for private investment, both foreign and local. The country has a genuinely democratic system of government and enjoys political stability seen as a sine qua non for ensuring a favorable climate for investment and sustained development. Bangladesh has been quick to undertake major restructuring for establishing a market economy, with the major thrust coming from the private sector. The country enjoys modest but steady economic growth. Its current development strategy is based on the premise that the creation and distribution of wealth occurs through the acceleration of growth driven by competitive market forces, with the government facilitating growth and making a clean break from the practices of a controlled economy where private investment is constrained. With this end in view. The government has been gradually...
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...Provincial Economic Development: Performance, Challenges, and the Way Forward Khalid Ikram* 1. Introduction Analyses of economic development in Pakistan have traditionally followed a “top-down” approach. They examine the behavior of macroeconomic indicators for the country as a whole, referring only in a general, even cursory, manner to the trajectories of each province, and even more summarily to the policy issues, constraints, and opportunities that confront the different provinces. The implicit attitude—that it is the federation as a whole rather than the federating units that matter—is so firmly embedded in the official mindset that, even after 65 years of Pakistan’s existence, the authorities do not produce official statistics of province-level gross domestic product (GDP), investment, savings, exports, imports, labor productivity, and other key economic indicators. 2. The Importance of a Province-Level Approach Why is a province-level approach important? The issue is not merely of academic interest. It is necessary to strengthen studies at the province level, because policies to address questions of employment, poverty, and perceived deprivation, and to improve the delivery of key services are more effective if the perspective is as close to the ground as possible. The validity of this approach is recognized by the burgeoning number of regional or state studies in India and in other parts of the world—such as China, Malaysia, Vietnam, Thailand, Indonesia, Brazil...
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...Introduction Balochistan is the largest province of Pakistan with 44 percent landmass of the country but has 5.6 percent of the population. The province which is almost half of the country’s land mass has been receiving least attention by successive governments since independence. Therefore the huge potentials of this province to become a strong economical hub could not be exploited and till today it remains the poorest of all four provinces. Apparently a barren province from agriculture point of view is rich in its natural resources. Huge reserves of mineral deposits, gas, oil and long sea shore makes this province extremely attractive at regional as well as at international level. The absence of basic development infrastructure and effective strategy coupled with backwardness, scant population base, rugged terrain exploited by sub nationalist leaders and sardars continue to undermine the progress and socio economic development of the area. Aim To carry out an indepth analysis of vast potential of natural resources in Balochistan with a view to suggesting a pragmatic natural resource development strategy for the province. Scope The paper will be developed in the following sequence:- a. Part I: Balochistan – Some Facts. b. Part II: Natural Resources – Potentials and Constraints. c. Part III: Recommendations. d. Concl. PART I FACTS ABOUT BALOCHISTAN Largest province of Pakistan, stretching over 44 percent of total area of the...
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...BUSINESS IN PAKISTAN UPDATED SEPTEMBER 2007 PREFACE In the preparation of this booklet we have tried to cover the principal aspects that regulate businesses in Pakistan, using, for this purpose, a language accessible to potential investors and business managers. We are aware that it is not easy to synthesize in a booklet of this nature all the legal, accounting, auditing, tax and labour rules/requirements that regulate businesses in Pakistan. However, if we have achieved our goal, contributing, by this way, to business development in Pakistan, we will be very satisfied. The booklet is designed to give some general information to those contemplating doing business in Pakistan, and is not intended to be a comprehensive document. Furthermore, its updating process is annual. Therefore, the users should consult us before taking any decision on the basis of information contains in this booklet. TABLE OF CONTENT FOREWORD 1 ABOUT HLB INTERNATIONAL 2 1. ISLAMIC REPUBLIC OF PAKISTAN 3 1.1 LOCATION 3 1.2 POPULATION DEMOGRAPHICS 3 1.3 INTERNATIONAL TIME 4 1.4 CLIMATE 4 1.5 LANGUAGE 4 1.6 CURRENCY 4 1.7 THE CONSTITUTION AND LEGAL SYSTEM 5 1.8 HIGHLIGHTS OF THE ECONOMY 5 1.9 ECONOMIC ARRANGEMNETS 7 1.9.1 List of Countries/Organizations with which Pakistan has Bilateral Investment Agreements 7 1.9.2 Pakistan and the Non-Aligned Movement (N.A.M.) 8 1.9.3 Pakistan and the Economic Co-operation Organization (ECO) 8 1.9.4 Pakistan and the...
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...Information Technology Board [PITB] has taken numerous initiatives to deploy swift, effecgtive and innovative IT solutions in Pakistan & has attained massive accomplishments. Plan 9 is an up and running successful project of PITB. Plan 9 is Pakistan's largest tech incubator. Tech incubators are business assistance programs that serve entrepreneurs that deal with technology. Incubators share office space and administrative services but the the core value that they serve is the incubation program to the start up companies. Plan 9 benefits a variety of economic and socioeconomic policy needs, which includes * creating jobs and wealth * Fostering a community's entreprenuerial climate * Technology commercialication * Diversifying local economies * Encouragin women or minority groups Jobs are created as if a team of 5 people successfully incorporate a startup then they would require more workforce and hence more job opportunites would lead to better economic conditions of the country. Plan 9 gives the opportunity to programmers and software developers and other IT personnel to bring out their 'big idea' to the general public. Plan 9 also encourages women entreprenuers to apply as women are an important aspect of the workforce as well Plan 9 was launched in August 2012 to facilitate technological entreprenuership in Pakistan. The incubation process is a tailor- made process desinged specially for each start up so that they can flourish. Plan 9...
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...economy has grown at the rate of 6-7% p.a. over the past few years. More than half of the GDP belongs to the service sector, a major number of nearly half of Bangladeshis are employed in the agriculture sector, with RMG, textiles, leather, jute, fish, vegetables, leather and leather goods, ceramics, fruits as other important produce. Remittances from Bangladeshis working overseas, mainly in the Middle East is the major source of foreign exchange earnings; exports of garments and textiles are the other main sources of foreign exchange earning. Ship building and cane cultivation have become a major force of growth. GDP's rapid growth due to sound financial control and regulations have also contributed to its growth. However, foreign direct investment is yet to rise significantly. Bangladesh has made major strides in its human development index.[4] The land is devoted mainly to rice and jute cultivation as well as fruits and produce, although wheat production has increased in recent years; the country is largely self-sufficient in rice production.[4][4] Bangladesh's growth of its agro industries is due to its rich deltaic fertile land that depend on its six seasons and multiple harvests.[4] Improving at a very fast rate, infrastructure to support transportation, communications, power supply and water distribution are rapidly developing.[4] Bangladesh is limited in its reserves of...
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...the unarmed and hapless citizens, terrorists aim to disrupt governance. Such attacks show the government in poor light. i.e. as one that cannot guarantee security of life and property, one of the most basic function of the state. In Angels & Demons, Dan Brown writes: “terrorism is not an expression of rage. Terrorism is the political weapon. Remove a government’s façade of infallibility, and you remove its people’s faith”. Types of Terrorism There are three types of terrorism. They are (a) State Sponsored Terrorism. (b) State Terrorism. (c) Organizational Terrorism. (a) State Sponsored Terrorism is always directed against another state, often by proxy, with the aim to destabilize it. A good example to drive home this idea is Pakistan sponsored terrorism against India. (b) State Terrorism is directed against a State’s own citizen. The reason could be numerous, chief among is the tussle between majority and minority group (both demographic and religious). A case in point is the 1994 Rawanda Genocide where majority ethnic Hutu tribe militia butchered nearly 8 lakhs Tutsis in 100 days of carnage. (c) Organizational Terrorism is used by groups to realize divergent aims including political, social, and economic. For example, Naxal groups use terror to realize the political goal of usurping State power while Al-Qaeda and Islamic State do it for religious reasons. How do terrorism organizations use technology, especially the internet? It will only be apt to say that...
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