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Introduction

Pakistan is a South Asian country hosting more than 200 million people. The nation has a rapidly growing economy which makes it quite a desirable destination for business investments. It had a GDP of $304 billion as of 2017. The growth rate has hit north of 5.7% while the gross national income has reached $1.15 trillion PPP (World Bank 1). There are many other reasons that make Pakistan a conducive market for enterprises. The region has extensive entrepreneurial activities which have increasingly made it more viable. Foreign investment has been booming leading to influx of more investors. The conditions are very favorable for business, but still some issues prevail. This discussion centers on the interest of a Pakistani native, Asad Jamal, in investing in his country of origin. Asad is a budding entrepreneur who has founded of called ePlanet Ventures.

Background

Asad Jamal is a native of Pakistan but has lived a significant part of his life in abroad after attaining his degree in London School of Economics. He founded a technology fund company in Silicon Valley; ePlanet Ventures. He has developed a remarkable career through investment in media, communications, advertising, internet, software and wireless products. Asad has for some time though of Pakistan as his next destination for investment. The nation has continuingly become a more lucrative landing site for investors from far and wide. This did not escape Asad, who has since had deep thoughts on taking thus next step.

The market performance of Pakistan has been well documented. With GDP above $300 billion, it is one of the best performing countries in Asia. The growth rate (5.7%) and gross national income make it substantially feasible. It is strategically located with premier economies in China and India close by (Amjad, Rashid 24). The young and growing population offers competitive labor cost while rising foreign investments and accompanying incentives make it more attractive. Additionally, the emerging middle class is very essential in the direction of the country economically. Infrastructure is also improving significantly. The country is however relatively untapped in the technological sector which means that there is little completion.

The market space is prime for exploiting, but it also presents some constraints that may potentially hinder success of investments. The situation is more critical for Asad who, despite being a Pakistani, does not exactly understand the market niche. He is not well versed with the business climate in the home country. Setting up ventures here comes with difficulty in scaling up after initial success in launching them. The state is in the process of growing its capacity therefore the quality and capabilities of the population may not be at par with the requisite standards. Other issues can be seen in the instability of the government. There are decent possibilities for disruptions through change of government and relevant policies.

Alternatives

There are other economic hubs located in Asia. China is one location that gives a great alternative to Pakistan. The economy is second only to US and is home to virtually all types of businesses. The GDP clocks in at $12 trillion. Numerous ventures have seen success in China. The growth rate has been 6% for the better part of the last three decades. It is the largest trading country worldwide but still has room for further growth (World Bank 1). Investing in China curbs many problems that Pakistan is faced with. There is stability in the leadership, very skilled labor and effective regulations in place. China is very open to international trade which has heightened the competiveness in the environment.

India ranks among top seven economies by size with GDP of $2 trillion. It is currently the world’s fastest growing economy which is a testament to its purchasing power and strength of the market. The country is well known for the extensively developed information technology. The software and IT sector has grown at high rate over the last five years (World Bank 1). It offers similar advantages to china such as huge workforce, political stability and great support for businesses from the government. India is preceded by China and US in preferred destination for investment. Other positive aspects include low production s costs, surplus natural resources and policies that are favor investors.

Japan is one of the most developed places on earth. It is very market-oriented; a feature that has contributed highly to the $4 trillion in GDP. Similarly to India and China, Japan is also a nucleus of advanced science and technology. It is very stable and has great corporate governance. The workforce is tremendously skilled while major strides have been made on economic policy development (World Bank 1). These alternatives offer stronger foundations for businesses based on the many advantages they have. These options address the issues concerning investment in Pakistan.

Solutions

For Asad’s venture to prosper and become bigger in Pakistan, a lot will be involved. Given his lacking knowledge of business environment, there is need for market research. It will be vital that he develop relationship with individuals who have in depth details on the market condition in the country. Seeking the know-how of the local persons will make it easier to establish his business and navigate it to a stronger position. One way of achieving this would be to get acquainted with skilled graduates on the job market. These graduates offer qualified labor force which will help propel the growth of venture (Amjad, Rashid 10).  Working with local individuals will help deal with his unfamiliarity to the nature of business within the Pakistan.

The other solution entails changing the destination for the investment opportunity. As observed, there are other viable investments spots in China, India and Japan. These countries form the cream of the Asian economies. Thus, uncertainty in Pakistan may be addressed through switching investment landing to the near-by India. Asad should first do extensive research on Pakistani market to the tune of being sure of his business decision. He should essentially get to know the critical elements that have implication on his business. Detailed information on the market will help understand the situation on the ground (Amjad, Rashid 10).  This information should help Asad weigh his options with consideration of all factors involved. As such, he will be able to make an informed decision. Detailed knowledge of the circumstances puts him in an appreciable position whereby he can determine which route will be more beneficial to the business. The choice will largely depend on the potential of venture to succeed in specific location.

Recommendations

Asad should really consider investing in Pakistan. The nation is on a good trajectory that promises better economy as the years go by. Given that the technology sector is still untapped, Asad can take advantage of the market space before competition starts growing. However, in case other possible destinations show greater potential for good returns, then the best option should be picked. Another option that Asad could take is to partner with other firms which could ensure a better chance of success. Additionally, Asad can seek to diversify his interests.

Work Cited

“GDP (Current US$).” Literacy Rate, Adult Female (% of Females Ages 15 and above) | Data, data.worldbank.org/indicator/NY.GDP.MKTP.CD? page=.

Amjad, Rashid. Private Industrial Investment in Pakistan. Cambridge University Press, 2008.