Use of Financial Instruments to Attract Foreign Investment: A Compression of Pakistan and Portugal

Development is directly associated with financial development, according to experts, the most efficient way to improve economy is to attract foreign investments. The foreign investment is crucial for a country’s development and growth. Financial instruments are the tools to govern and organize the economic activities of a country especially when it comes to foreign investments. Pakistan was the fastest growing economy of Asia five years prior. According to indicators Pakistan stock exchange was ranked at number 1 in Asia according to economic surveys and financial indicators. The economic performance of Pakistan is incredible. Pakistan was listed the best stock exchange in 2017. Similarly, despite being member of the European Union, Portugal was one of those countries which adopted industrialization very late. After adopting new economic trends and financial instruments, Portugal’s growth was rapid. Hence, the said two countries were the perfect pair to analyze the inclusion and role of financial instruments for attracting investors of growth, economy and international market. Current article was only one of its kind as it was the only study to specifically analyze the two countries on such specific areas. the analysis was done on the basis of available data provided by the governments of both countries to analyze the performance of both economies and the measures taken by both countries to attract the investors. The study gives a brief data of financial instruments being used by both countries and their contribution in attracting the investors.