Pakistani viewpoint

"There are positive opportunities for locals to start new ventures."

The impact of globalisation
The USA is the "R&D centre" of the world, China is the “production factory” of the world and India is the "key back office" of the world. These countries have clearly defined their roles in the global arena but Pakistan, as yet, is not so clearly identified despite being the seventh largest country in terms of population. The recent changes in the political and economic situation in Pakistan have created a perception which is preventing significant foreign investment in the country, and has also brought it to a point where its exports are being hampered. The world is rapidly evolving and has become known as a "global village", causing interdependencies across national borders. As a result, there are chain responses in which an act in one country affects another. This not only potentially impacts on a nation’s economy, but also on its politics, society, technology, security and general environment. 01
As globalisation relies on interconnections, one of its critical aspects includes regional integration, so economic benefits can be shared. Pakistan has played a conducive role in developing such regional and multilateral organisations including; the South Asian Association for Regional Cooperation (SAARC); the Economic Cooperation Organisation (ECO) between Pakistan, Afghanistan, Iran, Turkey and the Central Asia States; the Organisation of Islamic Countries (OIC); and, the Asian Cooperation Dialogue (ACD). The force of globalisation cannot be ignored, simply because in today’s world, we cannot isolate ourselves economically. If we do, we will face not only a lack of choices and quality products but overall our standard of living will also fall. Coming to the current business scenario in Pakistan, the recent political instability in the country has reduced the confidence of some big investors in the economy. This has led to two negative impacts. Firstly, there are fewer injections of new investment and secondly, some existing investors have pulled out. For example, recently, COMSATS discontinued its operations in Gilgit (Northern area) due to an irregular electricity supply and political tensions in the area. 02
Despite the negative impacts for Pakistan, such as reduced infrastructure development, delays in the introduction of new technology or sharing of skills and knowledge, there are positive opportunities for locals to start new ventures, provided their businesses are not heavily reliant on technology or are highly skill based. For all those businesses that are not technology intensive and require less advanced knowledge and skills, the current situation presents an ideal opportunity. For others with greater technology and skill needs, the picture is more gloomy as it’s difficult for them to become involved in exports, or to afford the maintenance charges. With some serious effort and joint collaboration, there are exciting opportunities for locals to undertake joint ventures in the SME sector.
Amina Ansir Pizza Plus, Pakistan 03

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