Comparative study of foreign investment of Pakistan and India

Investment is deemed to be the backbone of an economy. It is necessary for both types of countries i.e.developed and developing because idle saving is just like a millionaire sitting idle and spending lavishly.Korah can never be the richest man of the world with idle hands so does the nations. In Economics ,three sector economies are composed of Investment , consumption and saving i.e. Y=I+S+C.Falling trends in any of the mentioned element can create disequilibrium not only in an equation but also in an economies.

Foreign investment is an integral part of investment which further has two parts i.e. foreign direct investment and portfolio investment. Foreign direct investment is an inflow of foreign assets by foreign investors in form of factories etc whilst portfolio investment is a purchase of money market instrument by foreign investors for financial returns.
In this paper I‘ll try to compare the foreign investment trends of two rivalry south Asian states i.e. India and Pakistan since Sept 9/11 event. After taking a keen review of statistics, rationality demands the answers of few questions like what Pakistan gained in war against terror. Who is wining this war? What will be the consequences of the war on Pakistan? Firstly Pakistan gains successive suicide attacks since 9/11.War is being won by India( though she is not the participant of war) because despite having almost 114 separatist movements she is successful in attracting unprecedented FDI of US$47billion in FY2008-09 whilst in Pakistan Foreign direct investment showed more resilience and stood at just $3205.4 million during the first ten months (July-April) of the current fiscal year as compared to $3719.1 million in the same period last year thereby showing a decline of 13.8 %. Last but not least the aftermath of war will be destabilized Pakistan.
Pakistan government should take serious steps not only in searching but also addressing the causes behind the reasons of this drastic difference. India isn’t heaven for foreign investment with 22% population living below than poverty line (2008 est.) .The only reason is lack of integrity and sincerity in foreign policy and economic planning of Pakistan. Every next government of Pakistan takes start by filling up papers and making committees without execution.USA has come out of the tragic incidence of war on terror but Pakistan is still facing unremitting bomb attacks. In brief the nations not learning from the history died on its own.

By : basiliskt