Have you ever considered the difficulty of starting a major company in Pakistan and why it is seldom done...
Israel is normally has more Hi Tech start up investments then India and China combined, though India and China has overtaken Israel.
All the warnings about the threat to Israeli high-tech from China and India were apparently not crying wolf: A report released over the weekend by the research department of Dow Jones VentureSource says the two giant emerging economies combined have now passed Israel in the amount of venture capital invested in high-tech startups in the first quarter of 2008.
The two Asian nations together also had the same number of such deals in the quarter as Israel, according to Dow Jones. Some $818 million was invested in Chinese and Indian startups combined, compared to only $572 million in Israeli firms.
The number of deals for the quarter was 55 for Israel, totaling the same as India, with 16, and China, 39, together.
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The U.S. still leads by far in all parameters concerning high-tech venture capital investments: $6.835 billion and 603 deals in the first quarter of the year.
European numbers were $1.53 billion and 180 deals.
While it is easier to start a business in Pakistan then India for example,,,its extrmely difficult to do business.
What is of great consequence is the relative ranking on another score – enforcement of contracts. For this indicator, Pakistan has the worse score among the ten used by the bank for the purpose of evaluation. Contract enforcement has three elements – number of procedures that have to be followed, the time it takes to enforce a contract, and the cost of enforcement. The three are assigned the same weight in the rating for this indicator.
In Pakistan’s case, 47 procedures have to be followed for the enforcement of contracts compared to 21 in the case of Singapore that has the top ranking in terms of ease of doing business. In Pakistan it takes an average of 976 days to reach a settlement on a contract dispute compared to 150 in Singapore. The cost of settlement of a contract in Pakistan is 23.8 per cent of the total value, a bit lower than Singapore’s 25.8 per cent.
The cost of doing business -DAWN - Business; February 23, 2009
Then you have to add the cost and diffculty of doing business in Pakistan with foreign investors, stories about kidnappings, demands for ransom, and killing of some hostages pose serious issues in their decisions to bring capital to Pakistan.
Security concerns must also weigh heavily with domestic investors particularly in troubled areas in Balochistan and the North-West Frontier Province"