Export sector needs foreign direct investment

KARACHI: Noted economist Prof. Dr. Hafeez Ahmed Pasha said that the Foreign Direct Investment (FDI) must be invested in export sector of Pakistan that would certainly bring the prosperity of growth trend in economy.

He was addressing to the second day of international conference on “Structural Reforms for Inclusive Development” which was organized by Applied Economic Research Centre in University of Karachi.

Chairing the 3rd session of the conference, he referred the example of India where FDI had limited pathway to invest so as to avoid the bad impact on economic. However, FDI had been invested in every walk of business in Pakistan except export sector which had been causing the vulnerability of economic condition.

He simply raised the question to the researcher, “why FDI had never been invested in export sector of Pakistan”.

Dr. Hafeez Pasha said that China had been contributing 60% investment into Pakistan but the lack of long-term policy would create predicaments for the development of human and economy.

More than dozen economists read their research paper to the conference.

While presenting the research paper on “Examining the Relationship between Inequalities in Gender Wage and Economic growth in Pakistan”, Asghar Ali said that economic growth could be effected by the gender wage differential through the cost of production.

“Lower female wage will increase the competitiveness of a country by reducing the unit cost of production and support expansion in exports and stimulate investment by increasing the profits of the producers and ultimately cause to foster the economic growth”.

The young researcher Umme Laila presented her research paper and said that microfinance had become very significant in providing financial services to poor people and to enable them to improve their economic and social condition.

In the concluding session of her paper, she purposed the suggestion to government that microfinance Institution needed more policy intervention to accomplish the wealth creation, fight against poverty and innovation which would support in asset accumulation for their potential clients.

Researcher Syed Hasnaat Shah briefly stated his research findings that there had been more one-for-one relation between FDI and domestic investment and thus support the assertion that FDI significantly crowd-in-domestic investment in Pakistan.

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