I made this presentation in the SAFA International Conference, held in Dhaka Bangladesh on October 10, 2013

1. Foreign Direct Investment
Challenges and Opportunities
The Pakistan Perspective

2. By
Sayyid Mansoob Hasan, FCMA

3. Human development has been
constrained by either the
resources or effective utilization
of the resources

4. The world where we live and
prosper has never been out of
resources

5. Only we were unable to
understand the resources and
lacked the knowledge as to how
to utilize them effectively and
efficiently

6. We have been consuming
resources and spending hem
mostly on fulfilling our desires
instead of the needs

7. The resources were taken into
“concentration” instead of
socializing them

8. Monopolies were created

9. Wars and conflicts were staged
and nations were put into chaos

10. only to capture the resources

11. human beings were the
“Commodities”

12. The era of modern age

13. awareness and consciousness
became better

14. the norms of exploitation were
also changed

15. The dynamics
which control the world

16. Economics
Finance
Trade
Investment
Geo politics
Communication and media

17. Each and every mechanism was
used to exploit the poor

18. Our immediate history

19. East India Company

20. 1600: British East India Company
1602: Dutch East India Company
1616: Danish East India Company
1628: Portuguese East India Company
1664: French East India Company
1731: Swedish East India Company

21. From the History of
Sub-Continent India-1

22. 1600: British East India Company (No direct
shareholding of the British Crown, only indirect
control)
1613-14: British East India Company sets up trading
post at Surat
1615-18: Mughals grant Britain right to trade and
establish factories in exchange for English navy's
protection of the Mughal Empire from the
Portuguese sea power
1764: British defeat the weak Mughal Emperor to
become rulers of Bengal, richest province of India

23. 1773: British East India Company obtains monopoly
on the production and sale of opium in Bengal
1792: Britain's Cornwallis defeats Tipu Sahib, Sultan
of Mysore and most powerful ruler in South India,
main bulwark of resistance to British expansion in
India
1799: Sultan Tipu is killed in battle of
Srirangapattinam
1809: British strike a bargain with Ranjit Singh for
exclusive areas of influence
1843: British conquer the Sind region (present-day
Pakistan)

24. From the History of China

25. 1685: Kangxi became the first emperor to open
limited trading with foreigners, which started with
the Canton territory. He also imposed strict terms
for trades such as requiring foreign traders to live in
restricted areas, staying only for the trading
seasons, banning firearms, and trading with silver
only
1699: The British East India Company made the first
sea venture to China in 1699, and the region's trade
with British merchants developed rapidly soon after
1711: The company established its first trading post
in Canton

26. By 1773: The British reached a landmark 1,000
chests of opium in Canton with China
By 1799: Reached the consumption of 2,000 chests
annually
1839: The refusal by Qing Dynasty authorities to
import opium resulted in the First Opium War
between China and Britain during 1839-1842
1841: Hong Kong Island was occupied by British
forces on 20 January 1841

27. 1842: On 29 August 1842 the island was formally
ceded in perpetuity to the United Kingdom under
the Treaty of Nanking. The British established
a crown colony with the founding of Victoria City the
following year
1856-60: The Second Opium War happened during
1856 and 1860, China was defeated again
1898: The “Convention for the Extension of Hong
Kong Territory also known as Second Convention of
Beijing on July 1, 1898, which also includes New
Kowloon, granting a 99 year Lease to Britain which
was to end on June 30, 1997

28. Hong Kong after
British Occupation

29. Hong Kong became the “Hub” of
all illegal businesses globally and
a “Black Market” for many
“Products”

30. Casinos
Drugs
Weapons
Money laundering
Smuggling of prohibited goods

31. The Coincidence?

32. 1773: British East India Company obtains monopoly
on the production and sale of opium in Bengal
By 1773: The British reached a landmark 1,000
chests of opium in Canton with China
By 1799: Reached the consumption of 2,000 chests
annually

33. What is the most famous
product of Afghanistan?

34. From the History of
Sub-Continent India-2

35. The Sub-continent India
remained in the rule of East India
Company until the First Indian
Revolution of 1857 (Sepoy
Mutiny of 1857 for the British)

36. 1857: The Crown took over the British East India
Company and its three Armies
1876: British Queen Victoria (1819-1901), head of
Church of England, is proclaimed Empress of India
(1876-1901)
1895: The three Armies were merged into United
India Army
1906: Muslim League political party is formed in
India
1939: Mohammed Ali Jinnah calls for a separate
Muslim state
1940: The Pakistan Resolution
1947: The Creation of Pakistan

37. The Hong Kong Handover

38. 1984: On December 19, 1984 a declaration was
signed by People’s Republic of China and the
Kingdom of Britain. The declaration stated that
China had decided to resume the exercise of
sovereignty over Hong Kong (including Hong Kong
Islands, Kowloon, and the New Territories) with
effect from 1 July 1997 and the United Kingdom
Government declared that it would restore Hong
Kong to the People’s Republic of China with effect
from 1 July 1997
1997: Honk Kong was handed over to China

39. Lessons from the History

40. All that happened in these two
major parts of the world started
with two small steps or you may call
Foreign Direct Investment
for trading by
British East India Company

41. Setting up of a post at
Surat, Sub-Continent India
in 1613-14

42. and

43. Setting up of a trading post in
Canton, China in 1711

44. Now we can very well
understand

45. The Foreign Direct Investment

46. Horizontal FDI

47. Vertical FDI

48. Platform FDI

49. Where do we stand in FDI?

50. SAARC Countries
by
values

51. SAARC Countries
by
global ranking

52. Foreign Direct Investment in
Pakistan started rising after the
takeover of government by
President Musharraf when Shaukat
Aziz was the Finance Minister and
the FDI further escalated in the term
of Mr. Shaukat Aziz as Prime
Minister during August 2004 to
November 2007

53. It is interesting to note that

54. “In 2002, Aziz worked with U.S.
administration to help advised
the United States to finance
the war in Afghanistan”

55. “On April 2002, Aziz chaired
a historical meeting on behalf of
Pakistan and United States, helped
the G7 members to understand the
useful information how the illicit
money is transferred was shared with
the finance ministers of G7 members
and Pakistan on other side”

56. The War on Terror

57. It has changed the perspective of
investments
and
foreign direct investment

58. Vested interests have recently
changed the geo-political
conditions of many countries
especially
the Middle Eastern Arab states

59. The Source of Arab Spring is
somewhere offshore

60. The investment flow is according
to the political and geo-political
great game plan

61. IMF and World Bank
and the Vested Interests

62. They are one and the same

63. Looking after their interests in
one form or the other

64. Do you remember?

65. Mr. George Soros
and
East Asia Currency Crisis of 1997

66. Pakistan

67. The Challenges and
Opportunities

68. With all the abundant
and
all kinds of resources

69. Pakistan is nowhere in the
Economic scene of the world

70. It can be one of the
top developed
countries in the world

71. Its strategic advantage
has become
the strategic disadvantage

72. Its ports

73. Its sea shore

74. Its natural resources

75. Its geographical position

76. Everything it can benefit from
has been turned into
disadvantages

77. We have the potential to grow

78. To grow
at a scale
and
speed
not witnessed
anywhere in the world

79. We need to

80. Change our paradigms

81. We need to look

82. At a broader scale

83. We need to

84. Rethink

85. Rethink
in the best interest of the nation

86. Redo a lot of things

87. Review our policies

88. Review our own perspective

89. Review our own self

90. Redefine our own self

91. and our own image

92. We are blessed with all the best
resources in the world

93. The people

94. and their minds

95. The land and the landscapes

96. Everything
within and above the earth

97. Everything
in the bottoms of the sea
and
within the sea

98. The air

99. Everything provides us ever great
opportunity to benefit

100. Economically

101. and

102. Socially

103. There is a great potential of
investments

104. Infrastructure development

105. Housing

106. Energy

107. Healthcare

108. Education

109. Manufacturing

110. Mining

111. Agriculture

112. Our development can not only
benefit our own country

113. Pakistan

114. It can also surely provide the
support for the development of
other parts of the region

115. especially the neighbors

116. God bless Pakistan