Constraints Faced by Industry in Punjab, Pakistan (original) (raw)
Related papers
Beyond the Investment Climate: Towards Understanding the Investment Conundrum in Pakistan
2000
Summary A snapshot glance at investment trends in Pakistan reveals two important phenomena. First, the level of investment in manufacturing itself is low and second, private manufacturing investment has tended to concentrate around the eastern province of the Punjab in the last two decades. This paper seeks to explore these issues with the help of secondary literature. The literature on
World Bank Other Operational Studies, 2009
In this paper we describe the econometric methodology applied in searching for empirical regularities on the investment climate (IC) effects and on the economic performance of Pakistan firms. We use firm level data coming from the investment climate surveys (ICSs) of Pakistanmanufactures and services-for 2007 and 2002. For identification of the main IC effects on economic performance we follow the robust productivity methodology developed in Escribano and Guasch (2005 and 2008) and Escribano et al (2008b). Once we have robust IC elasticities and semielasticities on productivity and on other economic performance measres, we follow Escribano, et al, (2008a) and Escribano, Guasch and Pena, (2008) for the evaluation of the impact of the IC variables in terms of the Olley and Pakes (1996) decomposition of aggregate productivity and in terms of the sample means of alternative economic performance measures (employment, wages, probability of exporting and probability of receiving FDI). This econometric methodology has been widely used in the ICA of many other countries, allowing us to do cross country demeaned productivity comparisons. Furthermore, it also allow us to estimate robust IC productivity effects controlling for endogeneity and observable fixed effects while having certain simultaneity among covariates, missing observations and measurement errors.
Investment in Pakistan: A Critical Review
Mpra Paper, 2008
The paper critically evaluates investment climate in Pakistan. It covers incentives given by the government to domestic and foreign investors. Special emphasis is placed on identifying the barriers that discourage investment in Pakistan. Major impediments include high doing business cost, political instability, corruption, government bureaucracy, inconsistent government policies, and poor law and order situation. The paper also highlights some international best practice solutions to encourage investment in the country. Pakistan should attach short-term priority to attracting investment to foreign exchange earning sector or at least both the foreign exchange earning sector and other sectors simultaneously.
Issues Relating to Investment in Pakistan and its Effects on Economic Growth
2015
Recent researches have explored large differences among the countries where the ownership of the firms and multinational companies (MNC’s) are legally protected. A study has been conducted to examine the current practices regarding the foreign direct investment and its regulatory framework in Pakistan. Concerns about the domestic as well as foreign direct investment have increased the attention with the economic growth. The authors look at the relationship between the foreign direct investment and growth rate of GDP using the time series analysis for the period of 1981-2011 for Pakistan. The observations show that Foreign Direct Investment (FDI) will in due course bring the economic growth. For the country, like Pakistan there is a need for the balanced laws which will protect the domestic as well as foreign investors. We have used the Granger Causality Ordinary Least Square (OLS) and the results favor the economic theory. This theory reveals that when a country follows the common l...
Industrial growth in Pakistan 2015: An Overview
2015
Pakistan is improving as it has maintained the growth momentum and achievements are broad based touching all sectors of the economy. The growth recorded for 2014-15 is 4.24 percent and will further accelerate in coming years as business climate is improving on fast track with better growth oriented policies of the government. Now situation is improving as the present government has launched comprehensive plan to create investment friendly environment & to attract foreign investors in the country. The investment policy has been designed to provide a comprehensive framework for creating a conducive business environment for the attraction of FDI. Private investment recorded in last year was Rs. 2,513 billion and it expanded to Rs. 2,645 billion for the fiscal year 2014-15. This increase in private investment is the reflection that private investors are showing confidence on government policies and situation is improving.
An Empirical Study of the Economic Status of Punjab Concerning India
International Journal of Asian Social Science, 2020
Industrial growth is one of the essential drivers for the economic growth of any economy. In this paper, an attempt made to measure the growth rate of the Punjab industry in India during the period of post-liberalization era-spanning 2003-2004 to 2017-2018. The study measures the magnitude and nature of the relationship among different components such as numbers of factories, fixed capital, investment, and profits, Net Value Added. Growth parameters of the manufacturing sector have used for the study. Econometric models, namely, Unit root test and Granger Causality applied in the existing research for analysis. The study shows that there is a strong positive relationship between the growth of the industry in Punjab and growth in India. Economic Reforms and liberalization process fail to bring significant improvements in the performance of the industry in terms of the factors, namely, number of units, employment, production, and fixed investment in Punjab. Finally, the paper also provided recommendations to boost the development of industries in Punjab. Contribution/ Originality: This study contributes in the existing literature and measures the degree and nature of relationship among different parameters related to the growth of the industry in Punjab and growth in India. The study indicates strong positive relationship exists among the growth of the industry in Punjab and growth in India. 1. INTRODUCTION Manufacturing can be a critical indicator of transforming the economic structure of developing countries. Manufacturing acts as a driving force of economic growth as well as on the development of countries (Andreoni and Upadhyaya, 2014). Every nation has to go through its learning procedure. The learning process blends with industrial policy investigation with oppressive influence analysis to develop evidence-based industrial policy measures of the nation. Unido's Industrial Development report, 2013 correctly frame that the manufacturing sector in a world today is an essential driver for the continuous economic and social development of the developing countries. Figure 1 exhibits midyear estimates produced by UNIDO; the figures have shown that the annual growth of world MVA (Manufacturing Value Added) is likely to be around 3.5 percent in 2017.
Drawing on the World Bank Investment Climate Assessment (ICA) enterprises' surveys, this paper reveals for a large number of developing countries and eight manufacturing industries, that investment climate (IC) matters for firms' productive performance. This is true (depending on the industry) for the quality of various infrastructure, the experience and education level of the labor force, the cost and access to financing, as well as different dimensions of the government-business relation. The empirical analysis also illustrates that Middle East and North Africa (MENA) low industrial productivity can be linked to the deficiencies of the investment climate in the region. The exception is Morocco, whose firms' investment climate and technical efficiency rank close to the ones of the most efficient economies of the empirical sample. The paper reveals as well that industries more exposed to international competition show a higher sensitivity to IC limitations. This is also ...
Slow Industrial Output Growthevidence-Based on Kohat Road Industrial Estate Peshawar-Pakistan
International Journal of Management & Entrepreneurship Research
The past decade has seen slowdowns in measured labor productivity growth across a broad swath of developed economies. The industrial sector grew 5.02 per cent in the outgoing fiscal year as opposed to the growth rate of 5.8pc recorded a year ago, in Pakistan. The main objective of this research is to examinethe small industrial performance in Peshawar-Pakistan. KPK is the smallest province in terms of area, among the four provinces, and the third-largest in terms of population. This study is about the total units Kohat road 124 industrial estates and 71 are closed which has spawned many social evils such a phenomenal increase in smuggling, trade and macro-unemployed youths indulge in illegal commercial ventures. The results show that the contribution of small-scale industrial sector toward the socio-economic development of the province is not significant. Furthermore, the main reasons are inconvenient location (away from the seaport), non-availability of skilled labor, inconsistent ...
AFRICAN JOURNAL OF BUSINESS MANAGEMENT, 2012
Weak economies strive hard to attract investments from their stronger counterparts. Foreign direct investment (FDI) is a buzzword in vogue for governments who face scarcity of capital to finance lucrative business projects. This present study is conducted to analyze the role of FDI on sectoral growth of Pakistan economy with special reference to agriculture and Industrial sectors for the period 1979 to 2009. Simultaneous models are developed to capture the joint effects of FDI on the said two sectors. Two Stage Least Square (2SLS) technique is used to estimate the role of FDI on sectoral growth. Augmented Dickey Fuller (ADF) test is used to identify the stationary condition of the variables. The study finds a significant negative impact of FDI on growth of agricultural sector. FDI positively affects the industrial sector but the impact is found to be statistically insignificant. Apart from FDI, a number of other factors like the availability of water for irrigation, public sector development program, and state of technology, growth of industrial sector and growth of service sectors have positive impacts on the growth of agriculture sector. The study confirms significant positive impact of the terms of trade, growth of service sector and growth of real GDP on growth rate of Industrial sector. It seems that exchange rate fluctuations and public sector development programs have suppressed the industrial growth in Pakistan as the study observes a significant negative relationship between them. It appears from the findings that real gross domestic product has contributed to the growth of services sector but surprisingly literacy rate in the country is found to have adversely affected growth patterns in the said sector. With the growth of industry and agriculture, it looks like the services sector has taken some positive influence. In light of the findings, it is recommended that investment friendly public policies are needed to attract more foreign direct investment in Pakistan. These efforts will not only foster growth of the industrial sector but also it will have positive effects on real gross domestic growth and other leading macroeconomic variables.