Hurdels Faced by Tuwairqi Stell Mills PPT

8/8/2019 Hurdels Faced by Tuwairqi Stell Mills PPT

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Presented by: Kashif

Qasim

Shayan

Hurdles for FDI in Pakistan with a Case

study of Tuwairqi Steel Mills

Hurdles for FDI in Pakistan with a Case

study of Tuwairqi Steel Mills


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Foreign Direct Investment

There are several determinants which affects foreign direct

investment:

Openness of trade

Taxes and exchange rate

Government polices

Introduction


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Global FDI outlook in 2009

Companies expect a sharp decline in their FDI expenditures in

2009. 85% of the responding firms reported its negative impact on

their FDI expenditures and programmes. The Following were

considered to be very threatening for FDI plans:

A deepening of the global economic downturn

An increase in financial instability

A rise in protectionism


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FDI in Pakistan

FDI is a major external source of funding to meet obligations of

resources gap and economic growth.

The FDI was constrained by a number of factors namely:

Political instability

Law and order

Economic environment and no proper infrastructure

Instability in stock markets and regulatory regime


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Tuwairqi Steel Project in Pakistan

First private-sector steel manufacturing project.

Initial investment by Tuwairqi group was $150 million.

The plant currently under-construction, spread over an area of

220 acres at Bin Qasim Karachi.


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The aim of the research report is to find out the current state of

FDI in Pakistan with an example ofTuwairqi Steel Mills. The

perspective of the study is to examine the hurdles faced by

Tuwairqi Steel Mill in inception of production activity.

Problem Statement


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o Nuzhat Falki

o Shahid Burki

o Farhan Sharif

o Aamir Khan

o Manzoor Wattoo

Literature Review


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Exploratory research provides insights into and knowledge of

an issue or situation.

Both primary and secondary sources were considered in

collection of our data.

Methodology


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Methods of Data Collection:

Interviews were specifically conducted on personal level (face

to face).

Snowball effect was used in gaining the appropriate data.

Various types of questions were asked mainly; direct, indirect,

open-ended, closed ended.


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Tuwairqis main competitor is Pakistan Steel Mill which is a

government operated. PSM retails at low rates because the

losses are barred by the government.

Pakistan Steel Mill has an edge over getting the contracts for

mega government projects.

Government officials ask for bribes to allot them contracts.

Results and Discussions


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Furnace oil is a rare commodity in Pakistan thats why Tuwairqi

delayed their production.

Shortage of Kerosene oil is also causing delay in manufacturing

of Steel.

Bureaucratic behavior is the major hurdle for growth.


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Labor at Tuwairqi is not adapting the latest technology.

The assumption was that electricity and water would be

supplied by the government of Pakistan. Later, the ground

realities emerged different and Tuwairqi had to invest a

sizeable amount.

Instability in oil prices had adversely affected the steel sector,

Tuwairqi also got a hit.


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The principle conclusion to be drawn from this analysis is that

Tuwairqi has not been able to function at its full potential due to

the following factors:

Local business environment

Infrastructure

Economic Strength

Labor Force

Conclusion


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There is a huge potential of investment and growth opportunity

in the steel sector of Pakistan. If Pakistan is able to attract more

FDI in this sector then how would the Pakistani government

strike a balance between the existing and new companies.

Area for Further Research


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Hurdels Faced by Tuwairqi Stell Mills PPT

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