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Foreign Direct Investment in Pakistan: "In the Shadow of War on Terror"
Mälardalen University, School of Business, Society and Engineering. Fudan University, School of Management, Shanghai, China. (Economic Sciences)ORCID iD: 0000-0003-4894-5989
2009 (English)Conference paper, Published paper (Other academic)
Abstract [en]

The paper looks at how Foreign Direct Investment (FDI) can be attracted to Pakistan in the shadow of war on terror. The political and economic situation drastically changed in Pakistan with the 11 September 2001 events. Pakistan decided to join hands with the US and its allies in combating terrorism.

The population of Pakistan is estimated to be about 170 million. Pakistan is at war with Taliban in Pakistan and Afghanistan. The country is facing tremendous economic crises. The war is being waged in the northern part of Pakistan in close cooperation with the USA and its allies, including NATO. Pakistan armed forces are considered to be contracted troops or missionaries for the West.

The political situation is very unstable. The judiciary is not functioning with wide spread corruption, extra-judicial killings, missing persons,  and target killings are common and every where. Several five stars hotels have been completely destroyed by suicide bombers with very high casualties including foreigners. Several UN officials and diplomats have been kidnapped or killed in various encounters.

This uncertain political environment, wide spread corruption, suicide bombings with extreme poverty, bonded child labour, and high level of illiteracy is creating a time bomb which can explode at any time and lead to a civil war. Very few foreigners dare to visit Pakistan. Tourism industry is non existent in Pakistan. Very few international airlines fly to Pakistan. Pakistan International Airlines (PIA) is making huge losses with out-dated aircrafts.  Shortage of energy is common and load shading is widespread in the country. Crime rate is one of the highest in the world.

Under these conditions, how can Pakistan attract FDI? An empirical study has been carried out in order to find out what are the costs and benefits in attracting FDI to Pakistan in the shadow of war on terror. Interviews have been carried out with government and military officials, international agencies, enterprises in the public and private sectors.

Finally, advice is given to the Government of Pakistan, international agencies and donors, foreign and local companies in measures to be taken in attracting FDI to Pakistan.

Place, publisher, year, edition, pages
2009. p. 1-11
Keywords [en]
FDI, technology transfer, war on terror, corruption, Pakistan and FDI
National Category
Social Sciences Other Social Sciences
Research subject
Industrial Economics and Organisations
Identifiers
URN: urn:nbn:se:mdh:diva-24076OAI: oai:DiVA.org:mdh-24076DiVA, id: diva2:682920
Conference
Joint Academic Conference of University of Adelaide and University of Indonesia: The 4th International Conference on Business and Management Research (ICBMR), The New World Order After the Crisis, Bali, Indonesia, 22 – 24 November 2009
Available from: 2013-12-30 Created: 2013-12-30 Last updated: 2016-01-11Bibliographically approved

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Khan, Sikander

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