Assignment No .

01

Group No. 07

Subject: Economic Environment of Pakistan

Submitted By: Group 07

Members: Roll No.

Zeeshan Ali 09
Hamza Ayub 17
Rana Adeel 21
Umer Hameed 24
M. Bilal 2078

Submitted To: Mr. Ahmad Nawaz

University of sahiwal
What is FDI?
Foreign direct investment (FDI) is a category of cross-border investment in which an investor resident in one
economy establishes a lasting interest in and a significant degree of influence over an enterprise resident in another
economy.

Pakistan FDI
Pakistan Foreign Direct Investment According to STATE BANK OF PAKISTAN
Key information about Pakistan Foreign Direct Investment
Pakistan Foreign Direct Investment (FDI) increased by 100.9 USD in Feb 2023, compared with an
increase of 222.6 USD in the previous month.Pakistan Foreign Direct Investment: USD net flows data is
updated monthly, available from Jul 1997 to Feb 2023.The data reached an all-time high of 1.3 USD bn in
Jun 2008 and a record low of -390.9 USD in Oct 2018.
The difference between the Total and the summation of data per country is due to the zero value of some
countries. Zero refers to the amount of less than $50,000.Related information about Pakistan Foreign
Direct Investment In the latest reports of Pakistan, Current Account recorded a deficit of 1.1 USD bn in
Dec 2022.Pakistan Direct Investment Abroad expanded by 1.0 USD bn in Dec 2022.Its Foreign Portfolio
Investment fell by 1.0 USD bn in Dec 2022.The country's Nominal GDP was reported at 377.3 USD bn in
Jun 2022.
Pakistan Total Export
PAKISTAN BUREAU OF STATISTICS
Key information about Pakistan Total Exports
Pakistan Total Exports recorded 2.3 USD bn in Feb 2023, compared with 2.2 USD bn in the previous
month.Pakistan Total Exports data is updated monthly, available from Jan 1996 to Feb 2023, with an
averaged value of 1.5 USD bnThe data reached an all-time high of 2.9 USD bn in Jun 2022 and a record
low of 547.2 USD mn in Jan 1999
1.The Pakistan Bureau of Statistics provides Total Exports, FOB, in USD. Exports Goods only

In the latest reports, Pakistan Total Exports grew 23.9 % YoY in Feb 2023Total Imports recorded 4.0
USD bn in Feb 2023, which registered an increase of 4.3 % year on yearPakistan Trade Balance recorded
a deficit of 1.7 USD bn in Feb 2023View Pakistan's Total Exports from Jan 1996 to Feb 2023 in the chart:

Commentary

According to the State Bank of Pakistan, the FDI inflow in the country increased by 27.9% during the
first seven months of the fiscal year 2021, reaching $1.2 billion. The major sectors that received FDI
during this period were the power sector, construction, and financial businesses.
Pakistan's total exports have shown steady growth in recent years, with the country exporting a diverse
range of products to different parts of the world. According to the State Bank of Pakistan, the country's
total exports reached $25.3 billion in fiscal year 2020-2021, which is a 13.7% increase from the previous
year.
The major exports from Pakistan include textiles, leather goods, rice, fruits and vegetables, and sports
goods. Pakistan has been able to increase its exports by diversifying its product range, exploring new
markets, and improving its trade policies. However, despite the increase in exports, there are still
challenges that Pakistan needs to address to sustain and increase its export growth.
India FDI
Foreign direct investment refers to direct investment equity flows in the reporting economy. It is the sum
of equity capital, reinvestment of earnings, and other capital. Direct investment is a category of cross-
border investment associated with a resident in one economy having control or a significant degree of
influence on the management of an enterprise that is resident in another economy. Ownership of 10
percent or more of the ordinary shares of voting stock is the criterion for determining the existence of a
direct investment relationship. Data are in current U.S. dollars.
India foreign direct investment for 2021 was $44.73B, a 30.51% decline from 2020.
India foreign direct investment for 2020 was $64.36B, a 27.17% increase from 2019.
India foreign direct investment for 2019 was $50.61B, a 20.17% increase from 2018.
India foreign direct investment for 2018 was $42.12B, a 5.38% increase from 2017.

India total Export

India Total Exports expanded 0.4 % YoY in Feb 2023, compared with an increase of 11.5 % YoY in the
previous month
India Total Exports Growth data is updated monthly, available from Jan 1958 to Feb 2023, with an
averaged rate of 13.5 %
The data reached an all-time high of 195.3 % in Apr 2021 and a record low of -57.1 % in Apr 2020
CEIC calculates Total Exports Growth from monthly Total Exports. The Ministry of Commerce and
Industry provides Total Exports, FOB, in local currency. Total Exports Growth prior to April 1991 is
sourced from the International Monetary Fund.
In the latest reports, India Total Exports recorded 33.9 USD bn in Feb 2023
Total Imports recorded 51.3 USD bn in Feb 2023, which registered an increase of 1.1 % year on year
India Trade Balance recorded a deficit of 17.4 USD bn in Feb 2022.

Commentary
Foreign Direct Investment (FDI) in India has been steadily increasing in recent years, reflecting growing
investor confidence in the Indian economy. India has implemented a number of economic reforms aimed
at attracting foreign investment, including liberalizing trade policies, simplifying procedures for setting
up businesses, and improving infrastructure.
Some of the major sectors that have attracted FDI in India include services, computer software and
hardware, telecommunications, and automobiles. Additionally, India has also been successful in attracting
FDI in the form of mergers and acquisitions, particularly in the pharmaceutical and manufacturing
sectors.

India is one of the world's major exporters of goods and services, with a total export value of around $326
billion in 2021. The country's main exports include petroleum products, precious stones, pharmaceuticals,
textiles, and engineering goods.
India's export sector has undergone significant growth and transformation in recent years, driven by
factors such as a growing middle class, increasing consumer demand, and a favorable business
environment. The government has also implemented various policies and initiatives to promote exports,
including export subsidies, export finance, and the establishment of export promotion council.

Comparison Pakistan and india export and FDI

India and Pakistan are two neighboring countries in South Asia with similar economies and
demographics. However, there are significant differences between the two countries in terms of their
exports and foreign direct investment (FDI).
Export:
India has a larger economy and exports more goods and services than Pakistan. In 2020, India's total
exports were valued at $290.6 billion, while Pakistan's were valued at $21.3 billion. India's top exports
include petroleum products, precious stones, and pharmaceuticals, while Pakistan's top exports include
textiles, leather goods, and sports goods.
FDI:
India is also a more attractive destination for foreign investment than Pakistan. In 2020, India received
$57.4 billion in FDI, while Pakistan received only $1.7 billion. India has a more diversified economy and
offers a more favorable business environment for foreign investors, with greater ease of doing business, a
larger consumer market, and better infrastructure.
Overall, while both India and Pakistan have growing economies and potential for future growth, India has
a larger and more diversified economy, higher exports, and more foreign investment than Pakistan.