hurdels faced by tuwairqi stell mills ppt
TRANSCRIPT
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Presented by: Kashif
Qasim
Shayan
Hurdles for FDI in Pakistan with a Case
study of Tuwairqi Steel Mills
Hurdles for FDI in Pakistan with a Case
study of Tuwairqi Steel Mills
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Foreign Direct Investment
There are several determinants which affects foreign direct
investment:
Openness of trade
Taxes and exchange rate
Government polices
Introduction
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Global FDI outlook in 2009
Companies expect a sharp decline in their FDI expenditures in
2009. 85% of the responding firms reported its negative impact on
their FDI expenditures and programmes. The Following were
considered to be very threatening for FDI plans:
A deepening of the global economic downturn
An increase in financial instability
A rise in protectionism
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FDI in Pakistan
FDI is a major external source of funding to meet obligations of
resources gap and economic growth.
The FDI was constrained by a number of factors namely:
Political instability
Law and order
Economic environment and no proper infrastructure
Instability in stock markets and regulatory regime
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Tuwairqi Steel Project in Pakistan
First private-sector steel manufacturing project.
Initial investment by Tuwairqi group was $150 million.
The plant currently under-construction, spread over an area of
220 acres at Bin Qasim Karachi.
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The aim of the research report is to find out the current state of
FDI in Pakistan with an example ofTuwairqi Steel Mills. The
perspective of the study is to examine the hurdles faced by
Tuwairqi Steel Mill in inception of production activity.
Problem Statement
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o Nuzhat Falki
o Shahid Burki
o Farhan Sharif
o Aamir Khan
o Manzoor Wattoo
Literature Review
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Exploratory research provides insights into and knowledge of
an issue or situation.
Both primary and secondary sources were considered in
collection of our data.
Methodology
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Methods of Data Collection:
Interviews were specifically conducted on personal level (face
to face).
Snowball effect was used in gaining the appropriate data.
Various types of questions were asked mainly; direct, indirect,
open-ended, closed ended.
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Tuwairqis main competitor is Pakistan Steel Mill which is a
government operated. PSM retails at low rates because the
losses are barred by the government.
Pakistan Steel Mill has an edge over getting the contracts for
mega government projects.
Government officials ask for bribes to allot them contracts.
Results and Discussions
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Furnace oil is a rare commodity in Pakistan thats why Tuwairqi
delayed their production.
Shortage of Kerosene oil is also causing delay in manufacturing
of Steel.
Bureaucratic behavior is the major hurdle for growth.
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Labor at Tuwairqi is not adapting the latest technology.
The assumption was that electricity and water would be
supplied by the government of Pakistan. Later, the ground
realities emerged different and Tuwairqi had to invest a
sizeable amount.
Instability in oil prices had adversely affected the steel sector,
Tuwairqi also got a hit.
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The principle conclusion to be drawn from this analysis is that
Tuwairqi has not been able to function at its full potential due to
the following factors:
Local business environment
Infrastructure
Economic Strength
Labor Force
Conclusion
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There is a huge potential of investment and growth opportunity
in the steel sector of Pakistan. If Pakistan is able to attract more
FDI in this sector then how would the Pakistani government
strike a balance between the existing and new companies.
Area for Further Research
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