As Pakistani economy growing rapidly, infrastructure development has become a must. China Development Bank (CDB) has assured Pakistan of financing some major development projects such as energy, construction of dams and roads, up-gradation of Korakorum highway, oil and gas exploration, railways and urban development in Pakistan. This news is surely a good one for Pakistan. These days, violence, terrorism and political infighting in seem to be the main attractions for international media.
CDB has become a top player in the Chinese banking sector and their willingness to provide huge amount of loan is an indication of the healthy nature of Pakistani economy. Another indicator of the healthy condition of Pakistani economy is the increase of foreign direct investment (FDI). It reached nearly $2 billion in the period July-February 2005-06. The figure in the same period of the previous year was just $680 million. This is a remarkable growth in just one year's time. Investment from has improved significantly and is expected to grow in the current year too.
Why are foreign companies coming to to investPakistan? What is your idea?
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In June 2004, Pakistan abolished the remaining restrictions on foreign direct investment, permitting foreign investors to retain 100% equity in their investments.
I suspect that had a lot to do with the 2005 increase in FDI.
Posted by: Brough Turner | April 5, 2006 6:24 PM | Permalink to Comment