Analysis of Foreign Portfolio Investment in Pakistan

Topics: Investment, Foreign direct investment, Macroeconomics Pages: 4 (1478 words) Published: October 22, 2011
Business is the need of human life as human can’t produce everything needed by them so they have to exchange the commodities when business expends at particular level it needs more finance as not everyone have enough finance so they need to raise capital Through loans or giving partnership (investment) to others “A commercial activity engaged in as a means of livelihood or profit, or an entity which engages in such activities.” Business is an organization engaged in the trade of goods services or both to consumers. Businesses are most important in capitalist economies. In which most of them are privately owned and administered to earn profit to increase the capital of their owners. Businesses may also be not-for-profit or state-owned. A business owned by multiple individuals may be referred to as a company, although that term also has a more precise meaning. (Investor World) Investment is the commitment of money or capital to purchase financial instruments or other assets in order to gain profitable returns in form of interest, income, or appreciation of the value of the instrument. It is related to saving or deferring consumption. (Maps of world Finance) Investment is involved in many areas of the economy like business management or finance not involved for household government and firm. Investment involves an individual or an organization like pension fund after some analysis and though to place or money in a vehicle instruments or assets like property, commodity, stock, bond, and financial derivatives and foreign assets dominated to foreign currency. Risk generates the possibility of return period. 1.2Foreign investment

Foreign aid and investment have played a critical role in Pakistan's economic development since the first years of independence. Since 1954, the government has tried to attract foreign investment to maintain economic development, provide specialized technical knowledge, and bring in much-needed foreign exchange. Incentives for...
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