Title Page
Contents
ABSTRACT 7
1. Introduction 9
2. World Investment Scenario-2009 11
3. Pakistan Economic Overview 13
3.1. Pakistan Korea Economic and Trade Relationships 16
3.2. Sector-Specific Measures Required To Increase Pak- Korea Trade 19
4. Opportunities in Islamic Mode of Financing 22
5. Pakistan’s Economic Outlook 24
5.1. Structural and Economic Reforms and Policies in Pakistan: 26
5.2. Fiscal Reforms in Pakistan 28
5.3. Liberalization and Privatization Program 31
5.4. Financial Sector Reforms 33
5.5. Recent Economic Growth Trends 37
6. Foreign Trade 40
7. Favorable Export Policies of Pakistan 41
8. Taxation System in Pakistan 43
9. Special Economic Zones in Pakistan (SEZs) 45
10. Foreign Investment: 47
10.1. The Prospects for FDI in the Primary Sector 48
10.2. Foreign Direct Investment Flows and Portfolio Investment 48
10.3. Country and Sector Wise FDI inflows: 50
11. Pakistan’s FDI Attractive Sector Wise Policies 55
12. Sector Policies 58
13. Credit and Loan Facilities: 60
14. Fee Structure 61
15. Agreement on Avoidance of Double Taxation 61
16. Investment Climate 62
17. Profitability 63
18. Protection of Foreign Investment in Pakistan 66
19. Foreign Exchange/Investment Regulations in Pakistan 66
19.1. Business Regulations for Company Registration 67
19.2. Foreign Exchange Control Act 70
19.3. Portfolio Investment and Special Convertible Rupee Account(SCRA) 70
19.4. Foreign Investment Promotion Act 71
19.5. The Foreign Private Investment (Promotion & Protection) Act of 1976 (FPIA) 72
19.6. The Protection of Economic Reforms Act, 1992 72
20. Financing and Bank Accounts 73
21. Cost of Doing Business in Pakistan 74
22. The Financial Intuitions in Pakistan 75
22.1. The Banking Sector: 76
22.2. Profitability of Commercial Banks in the First Half of 2009 78
22.3. Non-Banking and Development Financial Institutions 81
22.4. Other Financial Institutions 83
22.5. Islamic Banking and Financing 85
23. The Capital Markets 86
24. The National Commodities Exchange Limited 89
25. The Asset Management Industry in Pakistan 89
26. Equity Market Performance 91
27. Dispute Resolution Mechanisms: 93
28. Domestic Arbitration 93
29. International Arbitration 94
30. Pakistan Korea Trade-Current Trends 95
31. Exports To South Korea- Facts And Fig 100
32. Conclusion 102
33. Annexure Cost of Doing Business in Pakistan 103
34. References: 125