Why Invest in Pakistan and Gwadar
Despite being so geographically close to India and Sri Lanka, Pakistan is quite unique with its own distinct culture and set of circumstances. With its vast green fields, improvement in security and it’s close, trusting and established relationship with China, it is in a fantastic position to capitalise on the huge amount of foreign investment that is pouring into the country right now.
People often forget that Pakistan has the sixth largest population (over 190 million) in the world and interestingly, it is the 24th largest economy in the world in terms of purchasing power parity. By 2050 it is predicted be the 16th largest economy in the world, overtaking economies like Canada and Italy.
Pakistan - The Emerging Market
Others factors that define Pakistan include its younger population and it’s growing middle class, the fact that English is the lingua franca of the business community, and its highly evolved services sector that contributes 56% of GDP. Pakistanis are actually the biggest consumer spenders in Asia, so there is a lot of potential for foreign business.
Financially, production and labour costs are lower in Pakistan, so it offers a higher yield than surrounding countries for investors. It’s stock exchange has actually been performing better than India’s in recent years and its GDP has risen for 5 straight years.
Pakistan is expected to continue to grow as it receives further foreign investment particularly Saudi Arabia which is emerging as a firm supporting partner. In the first nine months of the current fiscal year, Foreign Direct investment in Pakistan improved 4.4% to $2.09 billion from $2 billion in the same period last year. The business sector in the UK has recently announced £100 million investments in Pakistan including oil & gas and other sectors. In early 2019, Saudi Arabia plan to spend $10bn for a new oil refinery in Gwadar.
It’s clear to see why China’s President Xi believes Pakistan has the capability to be the next Asian Tiger and here at CPIC we are proud to be at the forefront of the Emerging Pakistan growth story and look forward to introducing international best practices and our company’s morals of trust, sincerity and transparency to the industry.