Related Content: MGT604 - VU Lectures, Handouts, PPT Slides, Assignments, Quizzes, Papers & Books of Management of Financial Institutions
Pakistan must increase Foreign Direct Investment, if it intends to enhance the growth of its economy. The experience of the developing countries is that FDI is directly related to economic growth. Two recent examples from the developing world are China and India.
With the rapid growth in Pakistan's economy, foreign investors are taking a keen interest in the corporate sector of Pakistan. In the recent years, majority stakes in many corporations have been acquired by multinational groups.
There have been two problems with the GDP growth rate in Pakistan. First, Pakistan has not
been able to sustain growth over the long term. Sometimes Pakistan grows at a rate of
around 7 percent and sometimes it retreats to a 3 percent growth rate.
Second, the growth rate of the economy in Pakistan has not been linked to improvement in
human development factors. Basic indicators like education, health, poverty, safe drinking
water, etc., have been neglected in Pakistan. The "trickle down theories" and market forces
of the 1970s and 1980s have failed to provide relief for the general public. A need exists to
link the growth rate of the economy to improvement in human development. The basic
argument is that a higher growth rate is of limited utility if it does not benefit the population
as a whole, including the poor.
Read more: MGT604 - Management of Financial Institutions - Lecture Handout 14
Related Content: MGT604 - VU Lectures, Handouts, PPT Slides, Assignments, Quizzes, Papers & Books of Management of Financial Institutions
Established under Section 8(3) of SBP Act 1956, is mainly responsible to meet credit needs of agriculture that being the mainstay of Pakistan’s economy generates nearly one fourth of the total out put and 44% of total employment and is the major source of foreign exchange earning.
Read more: MGT604 - Management of Financial Institutions - Lecture Handout 07