Pakistan must increase Foreign Direct Investment, if it intends to enhance the growth of its economy. The experience of the developing countries is that FDI is directly related to economic growth. Two recent examples from the developing world are China and India.
With the rapid growth in Pakistan's economy, foreign investors are taking a keen interest in the corporate sector of Pakistan. In the recent years, majority stakes in many corporations have been acquired by multinational groups.
There have been two problems with the GDP growth rate in Pakistan. First, Pakistan has not
been able to sustain growth over the long term. Sometimes Pakistan grows at a rate of
around 7 percent and sometimes it retreats to a 3 percent growth rate.
Second, the growth rate of the economy in Pakistan has not been linked to improvement in human development factors. Basic indicators like education, health, poverty, safe drinking water, etc., have been neglected in Pakistan. The "trickle down theories" and market forces of the 1970s and 1980s have failed to provide relief for the general public. A need exists to link the growth rate of the economy to improvement in human development. The basic argument is that a higher growth rate is of limited utility if it does not benefit the population as a whole, including the poor.
Aggregate planning: Intermediate-range capacity planning, usually covering 2 to 12 months.
As Operations Manager we should be able to understand and identify the various Planning Levels which are Short Range Plans, Intermediate Plans and Long Range Plans.