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SAZH-TAF Report
Foreign Direct Investment
Issues

Trust System

The Doing Business index by the World Bank ranked Pakistan as one of the lowest in the enforcement of contracts and taxation system.

Political - Political Stability

The political stability of a country, its economy and policies are important parts of its trust system with foreign investors.

Political - Security Clearance

Members of our Round Table pointed out that one of the most common issues, in particular with the barrier to entry that a foreign investor faces in practice, is the security clearance requirement.

Industry - Telecom

The telecom sector in Pakistan has been growing and expanding at an impressive rate for the last 15 years.

Legal - Dispute Resolution

Various members of our Round Table (ICSID Members, Barristers in the UK, law firms in Pakistan, members of the International Law Association, former company secretaries and legal heads of the biggest companies in Pakistan, such as ICI, HBL, etc. and various others from the private and government sectors) opined the weakening Rule of Law and Enforcement of Contracts as the reality of Pakistan

Political - Devolution of Power

The 18th Amendment to the Constitution devolved several crucial functions to Provincial Governments by abolishing the Concurrent Legislative List in the Constitution and amending the Federal Legislative List.

Economic - Foreign Exchange

The Round Table discussions with our stakeholders led to the consensus that as remittance of finances is vital to investors, in the form of profits, whether dividends or royalties or sale of shares.

Industry - SME

Pakistan does not offer substantial protections to its Small and Medium Enterprises

Human Resources - Certification & Training

FDI is inherently tied to the host country’s working population

Political - Bureaucratic Quagmire

According to the experts in the largest law firms, there are frequent examples of investors having been communicated a policy by one department, only to have that contradicted by another department.

Industry - Power

Pakistan’s energy sector is an essential part of its economic productivity. Research shows that the level of energy production is directly linked to the country’s progress

Industry - Microfinance

Our expert, from the Pakistan Microfinance Network was asked to share the issues his member companies who were micro-finance banks were facing in attracting foreign investment

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