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7 Reasons Why Foreign Investors Should Invest In Pakistan

7 Reasons Why Foreign Investors Should Invest In Pakistan

Pakistan is a growing economy that is the second biggest market in the South Asian region. The competition in Pakistan is relatively low and the economy is rapidly growing in the region which are just a few things that can attract foreign investment to the country. Despite all the reasons, Pakistan is relatively unknown among foreign investors which is the reason why we are going to discuss some reasons why foreign investors should invest in Pakistan:

1. Strategic Location

Pakistan is the 36th largest country in the world with an area of approx 800,000 square kilometers. Despite the country being the 36th largest, Pakistan has a population of over 220 million, which means that the country has the fifth largest population in the world.

Geographically, Pakistan is located at a very important location with its neighboring countries consisting of China, India, Iran, and Afghanistan. It lies in a very strategic part of the South Asian Region where games like Solitaire are commonly played and almost every kind of business is flourishing.

Pakistan has a good location for different businesses in sectors such as agriculture, trade, import & export, sporting goods, etc.  Because China and India are its neighbors, Pakistan plays a key role in regional development. Pakistan also has access to warm waters and sea routes, which is also very important for trading.

2. Growing Economy

Pakistan is a growing economy and in recent years, we have seen notable growth in the GDP of the country. Pakistan has emerged as one of the fastest-growing markets in the world. Different industries such as garments, agriculture, sporting goods, construction materials, textiles, etc have been the top contributing industries to GDP growth.

Pakistan is also a part of the N-11 countries in the world. This consists of countries that hold the potential to become the top economies of the 21st century.

3. Growing Population

A country with a growing economy and a good population is what most foreign investors are looking for because this means more opportunities for them. Pakistan has a population of over 220 million, which is rapidly growing and in the upcoming decades, the population is predicted to reach the 300 million mark. All of this means endless opportunities for foreign investors and foreign companies who can unlock the true potential of this country.

4. Low Labor Costs

The labor costs in Pakistan are also very competitive. The minimum wage for an unskilled worker in Pakistan is around Rs. 20,000 – 21,000 / month which is roughly around $125. If we compare these labor costs to neighboring countries then we found that the labor costs in Pakistan are lower than in other countries, even lower than in China where most of the top companies in the world including Apple prefer to get their labor work done.

Plus, the costs of living in Pakistan are low and even the costs of other things like garments, playing cards for games Klondike Solitaire, electronics, etc are also low as compared to neighboring countries in the region, which means that foreign investors could easily get more work done in less money.

5. Growing Middle-Class

Along with a growing economy, the middle class of the country is emerging. It is estimated that more than 80 million people belong to the middle, which is well over the population of most European countries. This means that there are a lot of opportunities available for businesses, both local and international, only if they could grab them.

6. Improving Infrastructure

The infrastructure of the country is also improving. In recent years, the country has focused on improving and expanding its infrastructure services by eliminating gaps in the infrastructure. The government has encouraged Public-Private Partnerships in the country through which the maintenance and financing of different infrastructure sectors & projects such as Mass Urban Public Transport, Transport and Logistics, and Social Projects are done through the partnership between public and private bodies.

Pakistan is also a part of the China-Pakistan Economic Corridor (CPEC), which is one of the biggest trade infrastructures in the world that will improve connectivity in the region.

7. Government’s Incentives To Foreign Investors

The government of Pakistan also offers various financial and tax incentives to foreign investors. These include tax concessions, low-interest loans, cooperation in research and development, exemption from various taxes, etc. There are also specific laws and regulations in place to protect foreign investors and safeguard their interests.

Pakistan has a pro-business environment and the government is also doing its part to provide tax concessions and exemptions to foreign investors.

These were some of the reasons why foreign investors should consider investing in Pakistan. Although it is an emerging market and there are certain risks associated with emerging markets, these can be minimized with well-planned strategies.

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