FDI: how it may impact start-ups

Foreign Direct Investment (FDI) is known to be an effective tool for building capital in developing economies like Pakistan. For developing countries, the positive impact of foreign direct investment is becoming increasingly popular as a tool for economic growth and strengthening (Muhammad 2007). Increase in FDI is considered to be beneficial for the growth of local entrepreneurs because it leads to increased economic activity, increased production, employment generation and technological advancement.

According to Ahsan Iqbal (Minister for Planning Development and Reform) in his address titled “Belt & Road”, at the China-Pakistan Economic Corridor (CPEC) Investment and Construction Cooperation Forum in Beijing, China said that, China was now the number one Foreign Direct Investor (FDI) in Pakistan, just within two years of the start of CPEC.

This may prove beneficial for B2C and B2B start-ups in China, Pakistan and other parts of Asia. The start-ups may benefit in the following ways:

1. According to APP, the Minister also reaffirmed Pakistan government’s firm resolve and commitment to the CPEC during his address and said that the Prime Minister is personally supervising implementation of CPEC projects. As a result of this, start-ups from the two countries will benefit through B2B relations that may also push the B2C segment.

FDI-boost-through-CPEC1

2. Problem solvers and the agents of entrepreneurial ecosystem find new ways to implement business strategies. FDI through foreign initiatives helps startups improve and develop their resource pool and business models.

Foreign investment plays a significant role in developing the local businesses and that eventually leads to GDP growth. In Pakistan one of the major factors that hampers growth in FDI is political instability. The government needs to take solid steps to ensure that projects like CPEC will bring in socio economic development. China may be the top FDI investor but the startup boost through CPEC can impact various regions across the globe.

CPEC could be one of the ways to develop infrastructure and ensure resource development through which Pakistan can develop political and economic stability in the region. The government maybe taking active steps to support projects likes these but they may not be enough to support local and regional startups. It needs to also develop a regulatory framework that will help local entrepreneurs, startups and foreign investors to collaborate.


News of the day

16 minutes Read 108 views

Company That You Can Start In Less Than...

February 15, 2018

There are various obstacles in the beginning of your personal company. However, cash is not the always certain…

View All
13 minutes Read 331 views

PITB’s 5th Roundtable Conference-Press Release

January 13, 2018

PITB’s 5th Roundtable Conference was held on Monday, 8th of January, 2018 at Arfa Software Technology Park which…

View All
21 minutes Read 783 views

Khareed.pk: A service paving the Way for National...

December 26, 2017

Nowadays, bringing an idea to the table is the biggest invention. Whether you have a fresh startup or…

View All
11 minutes Read 198 views

Alibaba Will Soon Start Promoting Automobiles by Use...

December 22, 2017

Before getting started to talk about that how you can online buy a car from Alibaba.
If you don’t…

View All
8 minutes Read 309 views

You, Your Wardrobe, and Stitch to Fit

December 21, 2017

Need an outfit designed for an upcoming event? Lost a few pounds and would rather get your favorite…

View All

Latest Videos

Less than a minute Read 281 views

CEO VizRah, Mohammad Adeel Javed, talking about Vizrah...

August 20, 2017

We asked Adeel Javed about his initiative VizRah and how he aims to positively impact the society through…

View All
Less than a minute Read 678 views

Yellow Plate Restaurant introducing fast food with unique...

August 10, 2017

Our team visited Yellow plate restaurant at Shah Jamal market Lahore to tantalize our taste buds. The Owner…

View All
Less than a minute Read 291 views

Views of Khuram Bukhari (Co-Founder Ravvish) about Life,...

August 10, 2017

We conducted a written dialogue about life and success with Co-Founder Ravvish, Khuram Bukhari

View All
Less than a minute Read 613 views

Maryam Afzal Madni talking about MADDY, Apparel Branding...

August 8, 2017

Young and Energetic Maryam Afzal Madni talks about her brand MADDY and the challenges faced by her as…

View All
Less than a minute Read 413 views

Has Nawaz Sharif really solved Pakistan’s Energy Crisis...

August 3, 2017

Leading energy consultant, and policy specialist, Ms. Saadia Qayyum, sheds light on Pakistan’s Energy Crisis, and its solutions….

View All