SHIFTING OF CAPITAL AND INDUSTRIES FROM PAKISTAN

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Significance and Scope of the Study

Scope of this study has been restricted to the following areas:

What are the causes of shifting of capital and industries?

What would be the possible consequences?

What could be the remedial measures to control the situation?

Review of Literature

Shifting of capital and industries from Pakistan is very serious issue now a day which has been high lightened in the news papers, articles, and journals and in the electronic media. Major reasons of which are attributed to energy crisis, law and order situation and lack of government interest to introduce economic reforms and to provide incentives to the local industry as well as Foreign Direct Investment (FDI). As per these reports there is an urgent need to stop the continuous flow of capital from Pakistan.

A study conducted in 2009 by the Institute of International Public Policy (IPP) Beacon House University, estimated cost of outages to industry by surveying a sample of 65 industrial units revealed that the estimated cost of load shedding for firms with self generation facility was PKR 74 billion and PKR 83 billion for firms without self generation facility. Therefore the total cost to the industrial sector was estimated at PKR 157 billion, which was 9 % of the total industrial value, added and constituted 7 % loss in production. The total cost of industrial load shedding to the economy was estimated at PKR 210 billion which is 2 % of GDP while the estimated loss of exports was PKR 75 billion. The resultant employment loss was estimated at 300,000 workers.[4]

Method

The methodology analytical coupled with qualitative and quantitative analysis adopted comprised of the three steps.
Step-1: Scoping

The purpose of scoping was to identify the most significant areas where shifting   is taking place on a large scale. 

Step-2: Literature Review

At this step detailed literature review of the selected areas was conducted. The related documents recent reports/publications whether printed or web-based were consulted to verify the empirical data and description of specific issues. 

Step-3: Formulation of the Recommendations

In this step it was analyzed that why the issue has reached to certain level of status, what are the consequences, what are the action plans in process and then suggest measures to overcome the issue.

Organization of the paper

Section-1 describes the causes of shifting of capital and industries from Pakistan.

In Section-2 its consequences have been discussed and analyzed.

Section-3 comprises of suggested measures. In the end conclusion of the discussion and recommendations has been made to overcome this problem. 

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