The focus of this report is to explore the impediments faced by the small and medium enterprise (SME) sector. SMEs in Pakistan constitute 90% of the economic establishments and contribute 30% of GDP and 25% of export earnings and 78% of the non-agricultural labour force. Any improvement in this sector can have a multiplier effect on growth and employment. Pakistan’s growth in general and that of the manufacturing sector specifically has remained fairly stagnant in the recent past.
Remittances to developing countries sent through official channels were estimated at US$ 406 billion in 2012 (World Bank, 2012). This represents a growth of 6.5 percent over 2011, and is projected to rise by 8 percent in 2013 and 10 percent in 2014. Current remittance flows are over three times the amount of official development assistance (World Bank, 2012). In Pakistan, remittances through official channels have grown from just around US$ 1.5 billion in 1997/98 to slightly over US$ 13 billion in 2011/12 (State Bank of Pakistan, n.d.; see also Table 1).
Cotton production is critical to Pakistan’s economy. In 2011, it was grown by more than 1.3 million farmers on about 6.6 million acres, mainly in the provinces of Punjab and Sindh. Total annual cotton production in Pakistan has hovered around 12-13 million bales during the last 5 years. At this level of production, it contributed 6.9% to the value added in agriculture and 1.4% to GDP.
Recent survey evidence shows that the most profitable and productive firms tend to adopt personnel policies that link pay to performance and that firms in low-income countries are less likely to use these “good” human resources management practices. Incentive pay is a key component of management strategy, and yet field evidence on the impacts of both individual and team incentives is limited to studies carried out in high-income countries.
The role of the local private sector as a catalyst for and on-going agent of good governance is debated. While some authors suggest that international organisations such as the World Bank or the IMF may play a more important role than private firms, others highlight the impact of multinational corporations, political frameworks or social unrest.
Foreign direct investment (FDI) is a good source of finance for long-term economic growth. It is especially important for its potential to transfer knowledge and technology, create jobs, boost overall productivity and enhance competitiveness in host countries. Many international development agencies, such as the World Bank, consider FDI as one of the most effective tools in the global fight against poverty, and therefore actively encourage poor countries to pursue policies that will encourage FDI flows.
Over the first decade of the new millennium, Zambia's real GDP rose by 80%. Much of this rise came from the mining sector, but a substantial fraction came from the manufacturing sector, whose output rose by 50% in real terms over the decade. This volume provides a detailed account of Zambia's current industrial capabilities. From mining-related industries through general manufacturing, agribusiness and construction, it describes the structure of each of the country's major industries.
Bangladesh has achieved rapid and spectacular improvements in many social development indicators during the last two decades or so. Within South Asia, Bangladesh has improved its position ahead of India and the region as a whole in a number of human development indicators although its per capita income is still significantly below the regional average.