Business Opportunities & Challenges Focus On South Asian Countries

South Asia typically includes Bangladesh, Bhutan, the Maldives, Nepal, Pakistan and Sri Lanka, includes Afghanistan, and Iran.The worldwide economy went into recession with developed financial systems recording negative growth and substantial downturn of emerging financial systems. The worldwide trade is forecasted to say no by 7% this year, as more nations adopt import substitution and protectionist guidelines. Even though the loss of worldwide commodity prices have assisted to curb domestic inflation and averted a supply side shock, the decline sought after for export goods and remittances has reduced foreign currency inflows, the worldwide economy continues to be seeing mergers & purchases.

 Bangladesh offers possibilities for foreign traders in important industries, including energy, steel, fertilizer, hotel, tourism, and petrochemicals. These possibilities are reflected within the inflows of foreign direct investment (FDI), which elevated from virtually zero in early eighties to $760 million in FY2007. . To satisfy the task, market-oriented liberalizing policy reforms were started within the mid-eighties and were went after a lot more intensely within the the nineteen nineties. These reforms were particularly targeted at moving towards a wide open economic regime and integrating using the global economy . Bhutan, among the world's littlest and least developed, is dependant on agriculture and forestry, which offer the primary livelihood in excess of 60% of people. Wave power exports to India have increased Bhutan's GDP growth. Bhutan's wave power potential and it is attraction for vacationers are key assets. The Bhutanese Government makes some progress in growing the country's productive base and enhancing social welfare.  Sri Lanka, the regions leading reformer of economic rules, managed to get simpler to acquire credit by strengthening the legal privileges of creditors and improving the supply of credit information.The dwelling from the Pakistan economy has transformed from the mainly farming base to some strong service base. Agriculture now only makes up about roughly 20% from the GDP, as the service sector makes up about 53% from the GDP Significant foreign opportunities happen to be produced in several areas including telecommunications, property and. Other important industries include apparel and textiles (comprising nearly 60% of exports), food processing, chemicals manufacture, and also the iron and steel industries.. Iran is really a founding person in OPEC and also the Organization of Gas Conveying Nations. Oil comprises the majority of Iran's exports (80%), worth $46.9 billion in the year 2006 Because the mid 90's, Iran has elevated its economic cooperation along with other developing nations in "south-south integration" including Syria, India, China, Nigeria, Cuba and Venezuela. Iran is growing its trade ties with Poultry and Pakistan and explains to its partners the most popular objective in order to obtain just one economic market in West and Central Asia.


 BUSINESS Possibilities

 1. The current government has adopted a fiscal strategy to produce a appropriate atmosphere to create Bangladesh a really attractive place to go for foreign traders within the South Asian region.

 2. Bangladesh really wants to be an energetic partner on the planet economic community. It is among the most open financial systems one of the developing nations. The Bangladesh economy was already liberalized extensively which is intensely going after a personal sector-brought, export oriented growth strategy.

 3. Private investment both local and foreign is welcome in areas except for only rive industries on proper grounds There's no restriction on the quantity of investment or perhaps in the proportion of equity. Full 100 % foreign investment and partnership with local private partners or using the public sector is freely permitted .Foreign traders now benefit from the same treatment as presented to the domestic traders.


 1. Food security and inflation are pressing concerns

 The unusual rise of food prices within the recent time, that has been a global phenomenon, has truly hard hit the weakest and also the marginalized groups. This cost hike was triggered by domestic production shortfall following successive disasters and through worldwide greater prices. The meals cost rise has severe human dimension and it has seriously eroded the buying capacity of individuals living underneath the poverty line and government employees, industrial employees, yet others with fixed earnings. Addressing the difficulty of the indegent impacted by greater food prices remains challenging.

 2. Atmosphere and global warming pose a significant development challenge

 The global warming also poses a significant development challenge for Bangladesh. Bangladesh's vulnerability to disasters also poses a danger. The current severe flooding and cyclone are premonitions of future possible catastrophe. Based on the Un Human Development Report 2007/2008, one meter increase in ocean level would inundate 18% of land area in Bangladesh, directly threatening 11% of people. Rising ocean levels and contact with climate problems could result over 70 million people being permanently or temporarily displaced.

 3. Foreign Investment:  Private investment from overseas sources is welcome in most regions of the economy except for only five industrial industries (restricted to public sector) as pointed out earlier. 100% foreign direct investment in addition to partnership both with local private sponsor or with public sector is permitted.

 Foreign investment, however, is specifically preferred within the following groups:

 Export-oriented industries-industries within the Export Processing Zones

 Technological difficulty items that'll be either import-substitute or export-oriented-undertaking by which more varied utilization of indigenous natural assets can be done

 Fundamental industries based mainly on local recycleables


 BUSINESS Possibilities

 1. The Iranian government believed in 1986 that several nations, chiefly Egypt, the U . s . States, and France, owed Iran US$5 to all of usDollar6 billion. Clearly, the ongoing costs from the war combined with falling oil revenues given the economy little elasticity.

 2. Iran were built with a US$5.4 billion balance of obligations deficit throughout 1986, largely consequently of low oil prices and also the disruption of oil deliveries triggered by Iraqi bombing. Oil prices fell from US$27 per barrel in November 1985 to all of usDollar12 in Feb 1986. Although prices rose in nov 1986, the typical cost of oil for that year was US$13 per barrel, half that in 1985. The believed US$10 billion in export earnings in 1986 was the cheapest since 1973.

 3.CAIRO - Egypt's Beltone Financial has signed an offer to accomplish its planned merger with Pioneers Holding and needs to accomplish the offer through the finish of May, Beltone stated on Sunday.


 1.Political tensions between Tehran and Kuwait elevated considerably following the U . s . States decided to reflag Kuwaiti oil tankers. Iran accused Kuwait and it is neighbors, especially Saudi Arabia, to be mere puppets from the "Great Satan."(US)

 2. Iran's relations using the other three GCC people--Kuwait, Oman, and Saudi Arabia- happen to be more complicated and, through the early and mid-eighties, happen to be indicated by alternating periods of hysteria and mutual accommodation.

 3. The outbreak of war between Iran and Iraq further alarmed the Persian Gulf Arab states.

 4. Continues to be affected by double-digit unemployment and underemployment.

 5. Underemployment among Iran's educated youth has convinced many to find jobs

 overseas, producing a significant "brain drain."


 BUSINESS Possibilities

 1Unilever has acquired the shares of Ambrosia Worldwide Ltd., Mehran Worldwide Ltd., and Pakistan Industrial Marketers Ltd., which form what's frequently known as the Polka number of ice-cream companies. Polka is among the earliest and well-known brands of ice-cream in Pakistan. The Polka group has three industrial facilities in Hub, Karachi and Lahore, correspondingly. It utilizes greater than 700 people coupled with a combined turnover of some Rs. 725 million in 1995.

 2. Recently, the federal government of Pakistan has substantially simplified the Foreign Private Investment (Promotion and Protection) Act, 1976, particularly provides that foreign investment shall 't be susceptible to more taxation on earnings compared to investment produced in similar conditions by Pakistani people.

 3. The current decrease in the amount of days to setup a company is important and ranks the nation one of the better in connection with this in Asia.


 1. The rapid depletion from the country's foreign currency reserves has become probably the most imminent risk facing its sovereign rankings and country ceiling.

 2. Simultaneously, delays in ale its fiscal government bodies to wean themselves from central bank financing from the budget deficit also represent a formidable obstacle for enhancing inflationary anticipation and reducing pressure around the Pakistani Rupee,

 3. Insufficient good governance, fight against terror and loss of opportunities would be the primary challenges faced by national economy and powerful political commitment is required to steer the nation from the current financial crisis.



 Using the gradual improvement from the safety and security situation, arrival of foreign site visitors to Sri Lanka has elevated by 28% in This summer 2009 in comparison towards the corresponding duration of the year before.

 Based on IMF latest report: Sri Lanka's economy will grow 5.five percent this year because of enhancing domestic demand and potential export growth following the 25-year war led to 2009 so that as global recovery begins.

 1. Aitken Spence, certainly one of Sri Lanka's top hotel firms, has started again talks with Six Senses Spas, an worldwide health spa chain, on building an up-market resort around the south-west coast near Ahungalla, an excellent beach resort where it's two hotels and Trans Asia Hotel continues to be refurbished and reframed as Cinnamon Lakeside Colombo.

 2. There has been other initiatives by business organizations including signing of the agreement by Suntel Ltd with Orient City - among the biggest IT parks being built to supply a sophisticated data communication solution, a good investment people $ten million by Dialog Telekom to add mass to mobile telecommunication infrastructure within the Northern Province connecting world war 2 ravaged province with relaxation from the mobile network in the united states.

 3. Initial steps taken through the Worldwide Organisation for Migration (IOM), to determine eight grain processing centers in Batticaloa district via a project funded through the Australian Government authorities Aus AID programme, and establishing of two s condition-of-the-art chilling centers in Trincomalee district by Nestle Lanka directly reaping helpful benefits the neighborhood rural towns.


 1. Poor governance could be seen like a major constraint to the introduction of a rustic. Via a brief political good reputation for Sri Lanka this shows the linkages present in many government problems that have impeded the introduction of Sri Lanka. Sri Lanka's earnings inequality is severe, with striking variations between rural and concrete areas. About 15% from the country's population of 20.two million remains impoverished. The results of 26 many years of civil conflict, falling farming labor productivity, insufficient earnings-generating possibilities for that rural population, high inflation, and poor infrastructure outdoors the Western Province are road blocks to poverty reduction.

 2. Sri Lanka is dependent on the strong global economy for investment as well as for growth of its export base, and also the global downturn is really a major worry. It wishes to broaden export items and locations to take advantage from the Indo-Lanka and Pakistan-Sri Lanka Free Trade Contracts, GSP Plus treatment through the Eu, along with other regional and bilateral preferential buying and selling contracts.


 BUSINESS Possibilities

 1.Various companies, including wave power, banking and minerals, will join together in Bhutan within the nations new grouping of 14 companies striving to advertise development in the nations private sector. The federal government has whether full or partial stake in most the businesses.

 2. A contract was signed between Bhutan's Planning secretary, Karma Tshieem and Henrik Neilson, mind from the Danish liaison office, to supply Bhutan with DKK140 million. The cash is perfect for the ten year plan inside the health insurance and education sector. A lot of the money, 76 percent, goes towards aiding the and education sector, while 11 percent is going to be allocated for vocational training. Denmark continues to be supplying help Bhutan's health sector since 1989 as well as in 2003 started enhancing the education sector.

 3.Bluewater Systems guaranteed an offer to provide Bhutan Telecom with new back-up systems, which will make an effort to relieve the last decade old system of monks traveling over the Himalayas transporting magnetic tapes towards the capitol of Thimphu. Bhutan and Nz would be the only nations so far to possess installed Bluewater systems.


 1. Unemployment - The present rates are 3.7% and it is still growing. It has brought to increases in lots of youth related problems in towns.

 2. Education - The training sector continues to be full of many problems in 2008. Our apparently 'trail and error' approach has not enhanced anything. There's lots of work.

 3. Private Sector Development - The nation anticipates the brand new industrial policy and also the assessment from the impact from the FDI policy. The Federal Government should place in programmes to build up business abilities, and support people to begin and own smaller businesses.


 While South Asian nations make significant progress in integrating using the relaxation around the globe, intra-regional trade remains really low. The reason why with this low-level of trade include protectionist trade routines, which discriminated against trade among bigger neighbors ongoing conflict between nations, transport and trade facilitation constraints then restricted quantity of mergers and purchases during these nations.

 However, there's ample scope of growth one of the nations talked about above in line with the recent developments within their financial systems. To summarize, emphasis is on enlistment of those nations that are later on listing of N11 to ensure that increasingly more intra-regional exchange products or services, investment, and growth and development of supply chains can occur in Asia. These also needs to aim to increase cooperation among themselves to improve the scope of possibilities provided with each country with eye around the challenges talked about also to ensure that harmonization of economic and trade could be eliminated.

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