Foreign Direct Investment in Auto Mobile Sector in Pakistan

Abstract

Primarily, the reason for carrying out this Project is that foreign direct investment assists in increasing the income that is generated through revenues realized through taxation. It also plays a crucial role in the context of rise in the productivity of the host countries. In case of countries that make foreign direct investment in other countries this process has positive impact as well. In case of these countries, their companies get an opportunity to explore newer markets and thereby generate more income and profits.

The auto industry has played a significant role in the large scale manufacturing industry as it contributes $3.6 billion to the economy besides import substitution resulting in annual foreign exchange savings of over $ 1 billion.

We concluded that FDI got nearer into Pakistan attributable to the attractive policies by the government and its continuity, another rationale has contributed an assortment i.e. privatization of industries.FDI also rig in to enlarge in the revenues, job opportunities.