Attracting FDI for Pakistan FDI Campaign by Adeel A. Shah Chairman, US-Pakistan Industrial Development Corporation USA
Players Key players: GOP, US Govt., Expatriates, US investors, Pak businessmen.
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
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.
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.
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”
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.
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
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
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.
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
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.
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