In this age of science and technology where distances are reducing and connectivity has increased, it is difficult for any country to live in isolation and claim prosperity. The geographical location of Pakistan is a blessing which can create money and resources for the nation. But unfortunately, every successive government in Pakistan has ignored this aspect of the country in every policymaking process. The result is that China took 70 years to realize the geographical benefits of Pakistan and invest in infrastructure. The government is still in slumber and is not actively pursuing the Chinese government to shift its small industrial units to Pakistan instead of Bangladesh. According to a report of the State Bank of Pakistan, the foreign direct investment into the country has fallen by 48 percent or to $316.1 million in the first four months of the current fiscal year. However, the portfolio investment has increased as the government has recently collected $1 billion by introducing bonds in the international market. The new bonds have improved the foreign investment profile of the country, but the real investment has dropped to $294 million from July to October on an annual basis. Despite the best geographical location of the country and the government claims that it has introduced business-friendly policies, the foreign direct investment has been falling over the years.
India is applying all tactics to isolate Pakistan politically and economically and the lethargic attitude of the government shows it has not hurry to mend the damage. The economic isolation is increasing day by day as the government has failed to produce industrial surplus and exports are nose diving. It appears there is no ability or capacity in the government to take revolutionary and practical steps to boost the national economy. It is just groping in the dark and is unable to find a way out. This situation is not promising and it will lead to the administrative failure.
Concerns are being raised by several quarters that full dependence on China will turn Pakistan into a ‘client state’ and it will be difficult for the country to survive on its own resources in coming years. The Chinese investment is welcome but other countries should also be persuaded to invest in Pakistan. It is also a matter of concern that the direct investment from China has also substantially decreased in the first four months of the current fiscal year. The Chinese investment stood at $276 million during the four months of the previous fiscal year.The direct foreign investment from the United Kingdom and the United Arab Emirates has also dropped and the other European or Arab nations are either reluctant to invest in Pakistan or they are still not persuaded with investment plans.
