Despite all positive indicators such as thriving stock market, stable currency and low inflation, Pakistan could not become a promise land for foreign investors who still prefer to go to India, Bangladesh or even Ghana than coming here. Since the country joined the US-led war on terrorism, hundreds of thousands of people have been killed in terrorism activities and the nation still feels the heat of uncalled for war despite the passage of over one and half decades. The nation has travelled from dictatorship to democracy, but conducive investment climate could not be created. The general impression all over the world is that Pakistan is a dangerous place to live and it is very difficult for anyone to invest in an unstable country to risk his money. The present government has introduced various reforms after coming to power, but it could not convert Pakistan into an attractive investment destination.
The International Monetary Fund has projected 4.7 percent growth rate for the country in financial year 2015-16 and the State Bank has lowered its benchmark interest rate at 40 years low. The construction industry has recorded a growth of 5.5 percent and car sales have jumped by 22 percent. The stock market is robust and decrease in oil prices in the international market has somehow resolved the balance of payment problem as the country spends five percent of its GDP on the import of petroleum products. According to IMF, Pakistan can save $12 billion in the next three years if the oil prices remain low. However, Prime Minister Nawaz Sharif needs to do more to maintain financial discipline. His government is engaged with IMF program soon after coming to power in 2013 and still looks toward the donor agency to streamline financial affairs. What the government needs to do is to announce a generous investment package for businessmen to enhance industrial growth. It should also look into the causes which lead foreign investors to land in India and Bangladesh than Pakistan despite acquiring a better position in ease to do business index than the countries in the region.
Through the good offices of Finance Minister Ishaq Dar, the country has achieved economic stability, but the economy needs to grow by at least 7 percent to meet the losses incurred during the years under dictatorship. At least 25 percent population in the country lives below the poverty line and most of it lacks health, education and employment opportunities. The government still not has come out of energy crisis and security issue remains to haunt foreign investors. However, fears of foreign investors can be removed if the government has the will and commitment to serve this nation.