The South Asian average for GFCF in the private sector in 2017 was 23.2%. Gross savings for Pakistan at 20% of GDP are also considerably lower than the South Asian average of 30.1%. De-industrialisation in Pakistan along with an unsustainable preference for consumption needs to be reverted with policies that promote investment in the manufacturing sector. Foreign direct investment (FDI) inflow into Pakistan, as reported by the World Investment Report 2018 prepared by UNCTAD, peaked in the mid-2000s. It is imperative that Pakistan introduces incentives as well as performance requirements to promote export-oriented investment in the manufacturing sector.

Source: The Express Tribune April 08, 2019 04:41 UTC