04/18/23 1

Attracting FDI for Pakistan

FDI Campaign

by

Adeel A. ShahChairman, US-Pakistan Industrial Development Corporation

USA

04/18/23 2

PlayersKey players: GOP, US

Govt., Expatriates, US investors, Pak businessmen.

Pak players

Expt-Paks

US Govt

US players

Pak Govt

04/18/23 3

Extra Mile

Since Pakistan is viewed as a start-up country, the Ministry has to go beyond its general job description to attract the FDI by incorporating more components covering broader base

US economic interest in Pakistan is just a 1/10th of a 1%!

Come prepared. Carry along defined projects- availability of raw material to expertise in making finished goods

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Educating Investment Community

Meeting with relevant investment bankers in the United States.

The investment bankers which carry Asia funds, especially heavily investing in India and have discretionary power over 10-20% fund utility beyond their set scope.

The Funds, PEs, or VCs carrying investment from international institutions or from government resources such as OPIC- Clearwater.

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International Consulting Houses Address 1st, 2nd, and 3rd tier international

consulting houses. Especially consulting firms dealing with

industries important for Pakistan Especially consulting firms dealing with

certain US companies which may be invited to Pak-economy such as food processing and so on.

04/18/23 6

International Think Tanks Speak at international economic forums and

leading business and policy schools about growing economy of Pakistan and commercial opportunities for US companies.

Provide them with newsworthy synopsis on economy and opportunities that could be published in their journals.

Engage their MBAs, International Public Policy, and Foreign Policy students to conduct voluntary research on Pak economy or “doing business in Pakistan”

04/18/23 7

Corporate Funds

Select relevant industries and offer them possible JVs to enhance their market share.

Enhancing their market share and leveraging labor arbitrage, the companies can increase their profit margins significantly

The market cap will go up as well.

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US Government

Incorporate relevant US agencies to endorse growing economy in Pakistan.

TDA US Dept Commerce, Intl Division Ex-Imp Bank, lending OPIC, PE and insurance World Bank, IFC US Dept of Foreign Agriculture

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Pakistan Components

Ready JVs in certain industries such as food processing, auto outsourcing, and so on.

Businessmen who are prepared to offer commitments for JVs

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Investment and Security Houses Bring along investment and security

houses, banks, and consultants who can offer precise information per industry.

Investment bankers should be able to present their services.

Investors should be able to offer their seriousness in equity participation, subject to a listed item.

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Pakistan Government

Plays catalyst, center of storm, remain at war footing till the plan turns into a constant deal flow provider

Facilitator Incentives Policy issues Framework issues

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Pakistani Community

A bulk of Pakistani community deals with retail operations and real-estate industry.

They have liquidity They are interested in investing in

Pakistan They have no clue where to invest and

how to invest- there is no credible vehicle available to satisfy their needs.

They may trust American or independent JVs with exit strategy attached to it.

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Technology, Mgt., Mkt Access We should seek modern technology by

forging JVs with US firms We should draw in scientific

management programs through JVs Forge JV with brand equity players We should get access by signing buy-

back programs We should reinforce off-set programs