Paradigm For The Foreign Direct Investors in The Virtual Sector of Pakistan
The Foreign Direct Investment (FDI) is currently low in Pakistan due to the recent wave of terrorism. In this situation, the impression of online global giants can be obliging. In view of that, this research assesses the attractiveness of Pakistanís virtual sector for investment by multinational companies. The findings reveal that conventional transaction systems, lifestyles and cultural differences, irrelevant market contents, business models, fragmentation, purchasing power, undeveloped payment systems, language differences, logistics, and unethical competitors are the major elements to avoid this industry. On the other hand, the pulls are supportive government initiatives, increasing number of personal computer and Internet users, and reduced bandwidth tariff. Nevertheless, the change in global business trends, such as fast, easy and low-priced trade initiation process, does indicate future potential of e-business growth in Pakistan, especially for the online global giants to create an alternative delivery or service channel for the local financial institutions and banks.
Keywords - Foreign Direct Investment, Virtual Sector, Pakistan