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Foreign Direct Investment in Pakistan: Policy Issues and Operational Implications


  • Khan, A.H.
  • Kim, Y.-H.


Given its fragile balance of payments position and urgent need to boost industrial production, Pakistan needs to significantly increase its mobilization of foreign resources. However, long-term official assistance will become increasingly scarce, while promoting large portfolio investments is not a proper market policy option due to Pakistan's underdevloped and narrow capital market. Significant increases in commercial borrowings are also not desirable. It is therefore crucial to accord high priority to foreign direct investment (FDI).

Suggested Citation

  • Khan, A.H. & Kim, Y.-H., 1999. "Foreign Direct Investment in Pakistan: Policy Issues and Operational Implications," Papers 66, Asian Development Bank.
  • Handle: RePEc:fth:asdbed:66

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    References listed on IDEAS

    1. Maurice Obstfeld, 1998. "The Global Capital Market: Benefactor or Menace?," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 9-30, Fall.
    2. Reinhart, Carmen & Khan, Mohsin, 1995. "Capital Flows in the APEC Region," MPRA Paper 8200, University Library of Munich, Germany.
    3. Diaz-Alejandro, Carlos, 1985. "Good-bye financial repression, hello financial crash," Journal of Development Economics, Elsevier, vol. 19(1-2), pages 1-24.
    4. Steven Radelet & Jeffrey D. Sachs, 1998. "The East Asian Financial Crisis: Diagnosis, Remedies, Prospects," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(1), pages 1-90.
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    Cited by:

    1. repec:jle:journl:107 is not listed on IDEAS
    2. Farrukh Suvankulov, 2015. "Revisiting National Border Effects in Foreign Trade in Goods of Canadian Provinces," Staff Working Papers 15-28, Bank of Canada.
    3. Zaman, Khalid & Khan, Muhammad Mushtaq & Ahmad, Mehboob, 2012. "The relationship between foreign direct investment and pro-poor growth policies in Pakistan: The new interface," Economic Modelling, Elsevier, vol. 29(4), pages 1220-1227.
    4. Ali, Sharafat, 2014. "Inflation, Income Inequality and Economic Growth in Pakistan: A Cointegration Analysis," MPRA Paper 53706, University Library of Munich, Germany.
    5. Zakaria, Muhammad, 2008. "Investment in Pakistan: A Critical Review," MPRA Paper 11543, University Library of Munich, Germany.
    6. repec:eee:rensus:v:79:y:2017:i:c:p:110-127 is not listed on IDEAS

    More about this item



    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East


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