Foreign direct investment (FDI) is an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country.
Furthermore, it is important to know that the foreign direct investment of Pakistan is getting affected due to some factors and the major factors are interest rate, inflation rate and more essential one is law and order situation of Pakistan.
According to World Bank report the current inflation rate of Pakistan 4.33 percent which is discouraging the foreign investors to invest their finance in Pakistan. Nevertheless, another very important factor to affect the foreign direct investment is interest rate and according to State Bank of Pakistan the current interest rate is 7.27%. Under this inflation rate foreign investors are being depreciated, therefore, investment is getting discouraged in Pakistan.
Furthermore, last but not the least factor to effect the FDI of Pakistan is law and order situation. No province of Pakistan is safe and sound. For example, In Karachi airport was attacked, in recently, two bloodbaths took place in Balochistan. One attack was done on lawyers and second one was done on police training college. Therefore, foreign investors are unwilling to come and invest in Pakistan.
I request the current government of to take some steps to motivate the foreign investors so that the foreign direct investment should not be effected any more.
Hamid Ali NB – Turbat
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