Page image rendered from the stored file at 110 dpi; it sharpens as you zoom. Outlines are placed from each region’s stored position on the page (596 × 842 pt).
readable
Source of this text: embedded text layer. The better of the embedded text and OCR is kept.
Global Financial Institutions and Debt
Dependencies
Pakistan's
frequent
balance-of-
payments crisis keeps it engaged with
the International Monetary Fund (IMF),
World Bank, and Asian Development
Bank. IMF programs typically bring with
them strict structural adjustments—such
as currency devaluation, tax adjustment,
and subsidy removal—that reshape the
business landscape. While these have
the effect of stabilizing the economy in
the long run, they can in the process
add tothe cost of doing business for
businesses
and
reduce
consumers'
purchasing power. At the same time,
foreign credit rating agencies observe
Pakistan's fiscal policies, influencing
investor perceptions and supply of
international funds.
International Oil Prices and Energy
Dependence
Energy remains one of the most critical
concerns of Pakistan. With very limited
indigenous oil and gas production, the
country
is
import-dependent.
International oil price fluctuations have
direct impacts on production costs to
industries
and
domestic
inflation.
Political relationships with the Gulf
states and Russia are engaged in
securing long-term supply agreements
and investing in renewable projects. The
global pressure to become green also
forces Pakistan to do likewise, providing
opportunities as well as risks for its
corporations.
Global Supply Chains and Technology
Transfer
The COVID-19 pandemic and
subsequent
global
supply
chain
disruptions
laid
bare
Pakistan's
exposure to global logistics. Shortages
in
raw
materials
like
chemicals,
machinery,
and
semiconductors
hindered
industries.
Pakistan
must
connect itself with global value chains,
attract foreign direct investment in
manufacturing,
and
leverage
technology transfer to be competitive.
Chinese,
Turkish,
and
Western-led
projects can propel modernization in IT,
agricultural,
and
renewable
energy
sectors.
Export-Led Growth
With synchronization with international
quality,
labor,
and
environment
standards, Pakistani businesses can
grow exports to high-income markets.
Textiles
and
clothing
sectors,
for
example, can advance along the value
chain by making a commitment to
branding and fashion design, instead of
low-cost manufacturing only. Similarly,
agricultural commodities like rice, fruits,
and halal meat can claim larger shares
of
Middle
Eastern
and
European
markets.
Digital Economy and Outsourcing
Global demand for IT outsourcing and
digital services has grown substantially.
Pakistan's
English-speaking,
young
workforce is ready to cash in on the
bounty. Worldwide compliance through
data protection laws, cyber security
regulations,
and
digital
trade
agreements would make Pakistan a
canopy
for
software
exports,
e-
commerce, and freelancing.
Renewable Energy Investments
7
Enterprise Edition