At a time the country’s economy is facing multiple challenges, an international magazine has declaredthe Pakistan’s equity market as the best in Asia as it has been showing better performance than China and India for the last one year. According to Forbes, the trade fund of the Pakistan’s Stock Exchange increased by 16 percent in one year whereas the fund remained in negatives in the two countries during the period in question.China and India are emerging economies whereas Pakistan is regarded as a frontier market, but the real growth of the economy in this country has always been elusive. China’s growth is evident from its trade surplus and its dominance on consumer markets not only in the developing countries, but also in the United States and Europe. Indian claim of emerging market is a myth based on media hype. Indian economy is burdened with 466 million below the poverty line population. Pakistan is the real success story of private sector development in which the government has failed to play any positive role. In the wake of terrorist activities and imprudent business and trade policies, the economy of Pakistan is less exposed to the global shocks. In positive sense, the economy is resilient and less vulnerable to interest rate fluctuations in developed countries, including the United States.
Despitefear of Pakistan to become client state of China, an investment climate is picking up in the countrydue to China Pakistan Economic Corridor. The project not only gives the Chinese goods an access to Middle East, European and African countries but also paving the way for foreign investment in the country.According to the magazine, the endorsements for Pakistan’s market reforms from overseas institutions have increased investors’ expectations which resulted in $1 billion support from the World Bankand acquisition of K-electric by Shanghai Electric Power Co.The magazine gives bleak picture of the Indian market due to demonetization of a part of currency and anti-investment policies launched by the Modi government. On another note, cumbersome policies of the Chinese government have blocked the flow of foreign investment into that country. Pakistan is regarded as the frontier market, a grade below the emerging market, but documentation of the economy is the biggest problem facing the government.
As a matter of fact, with little efforts, Pakistan can be turned into an attractive destination for business, industry and trade for the overseas investors.
The government has to enforce writ of the government on administrative and financial affairs and should not miss the opportunity of vast foreign investment in CPEC projects. The official machinery has to work overtime to for the purpose.
