Pakistan is the 5th most populous country in the world and the second biggest market in South Asia. The country has relatively low competition in the market as compared to other countries and has a rapidly growing economy that makes it a top suitor for many investors. Despite being such a huge market, many investors are not aware of this beautiful country and the potential that this country holds in terms of business.
Pakistan will soon emerge as one of the top growing economies of the world and this country has everything that attracts foreign investors, a rapidly growing economy, a huge market size, and a population of middle-class people who don’t hesitate to promote business in the country. Therefore, to let the world know about Pakistan and whether it is a good place for investment or not, here are some reasons why foreign investors should consider investing in Pakistan and why it is a great idea for them to invest in Pakistan:
Prime Geographical Location
With a total area of about 800,000 sq kilometers, Pakistan is the 36th largest country in the world but it is the 5th most populous country in the world. Pakistan lies at a strategic position in South Asia where it has neighboring borders with China, India, Afghanistan, and Iran.
Not only has Pakistan trade ties with its neighboring countries but it also has access to warm water sea routes that play an important role in trade thanks to its southern and south-western border with the Arabian. Along with this, Pakistan also has trade relationships with the central Asian states. This shows the importance of Pakistan’s location and how it is a near-ideal place for opening a business.
A Growing Economy That Is Yet To Reach Its True Potential
Pakistan is a growing economy that is yet to reach its full potential. Although in the past few years the economy of Pakistan has seen major ups and downs but currently, it is growing at a continuous rate. The economy of Pakistan has seen major GDP growth in recent years and it is one of the top growing economies in the world. It is also expected that Pakistan will soon become one of the top economies of the 21st century as the country has the potential to do so.
The major industries in Pakistan that contribute to the economy of Pakistan are textiles, garments, agriculture, sporting goods, and construction materials. Along with this, the tourism industry is also expected to boom in the upcoming years.
A Huge Market
As mentioned earlier, Pakistan is the 5th most populous country in the world with a population of over 220 million. For most international companies and foreign investors, such a market that has a huge number of potential customers is good as it means more profit.
The population of Pakistan is rapidly growing and soon it is expected that in a few decades, the population of Pakistan will cross the 300 million mark. A market with such a huge population means a lot of business and employment opportunities in the near future. In a market so huge as Pakistan, any business can make a profit for itself whether it is a clothing outlet, a fast-food restaurant, or a game like Words With Friends,
Competitive Labor Costs
The labor cost in Pakistan is highly competitive as compared to neighboring countries. At the time of writing, the minimum wage for unskilled workers in Pakistan is around Rs. 25,000 or $125. Compare this cost with any other country in the region and you would find that Pakistan has the lowest labor costs. These costs are even lower than in China, the country to which most companies turn because of its competitive labor costs.
Similarly, the minimum wage for skilled workers is also less than in neighboring countries and the real reason behind low labor costs is that the cost of living in Pakistan is low. Compared to a developed country like France or England, you would find the cost of living in Pakistan to be meager.
Even the cost of in-demand and highly rewarding skills such as software development, app development of different apps, and programs like Scrabble Word Finder is also very competitive in Pakistan which makes it great for the IT industry too.
Growing Infrastructure
Another plus point of investing in Pakistan is that the infrastructure in the country has vastly improved and is gonna continue to improve. The government of Pakistan has recognized the importance of infrastructure and how it sustains both economic and social development. Pakistan is also a part of the China-Pakistan Economic Corridor (CPEC) which consists of various infrastructure projects, aiming to improve connectivity within the region along with promoting trade in the region.
Incentives For Foreign Investors
Foreign investors should be happy to know that Pakistan offers various incentives. These incentives include tax concessions, exemption from various taxes and duties, low-interest loans, etc. In addition, there are also specific laws in place to safeguard the rights of foreign investors. The overall environment in Pakistan is business-friendly and attracts foreign investors into the region.
Although challenges like political instability and poor infrastructure have made it difficult for foreign investors to gain entry into the country in the past, currently these challenges are mostly being taken care of which means entry barriers for foreign investors are being lowered.
CM Gandapur demands judicial probe into cipher case
Tags:
foreign investors
