There are strongest indications that Pakistan is going to be a business and industrial hub in the South Asian region in coming years, but some asset managers fear the recent spate of terrorism and aggressive anti-Pakistan policy launched by India could harm foreign investment in the country. India has launched a full-fledged campaign against Pakistan to isolate it from the comity of nations and obsessed by the propaganda, investors from certain countries are reluctant to invest despite the fact that the country’s benchmark index has grown over five-fold since the financial crisis of 2008. The business is booming in the country and local investors are taking the benefits of the liberal policies. No doubt corruption is the problem but the country has started improving its position on the corruption perception index. Free trade agreements have been signed with various countries and joint partnership programmes are being discussed. It is the matter of perception created by the hostile media of the enemy about Pakistan. Once perception is improved and soft image is created, the foreign investors will be unable to resist from coming to Pakistan. It is the age where foreign policy and economy go side by side. It is, therefore, necessary to concentrate on improving foreign policy along with economy.
There is a need to build a trustworthy environment for investors. The local investors are also important and they not only need tax incentives but also soft loans from the commercial banks. But procedure of the loans is very comfortable for large-scale organizations but a nightmare for the small and medium size units. No one knows how long this policy will continue, but it is necessary to introduce reforms in the banking system. According to experts, Pakistan can attract up to $500 million investment from international investors in the stock market alone once its image is improved. The government has just concluded its $6.6 billion three years extended facility programme with International Monetary Fund and is trying to obtain loans from other sources. Despite all odds, the positive improvement is visible in the economy after the fall of oil prices in the international market. However, the prices are now going up and the government will have to make an alternative strategy to cope with the situation.
The country is on the verge of takeoff and it is necessary to activate all the government departments to deal with new realities. The economy is improving and the government should have to be proactive to foil all the conspiracies which are being hatched to dilute economic gains.
