Pakistan’s improved security scenario is fuelling economic growth and the South Asian nation will be upgraded to “emerging market” status by index provider MSCI.
But the country businessman finding it difficult to convince the foreign investors to overlook the violent past and put money on its economy. The country’s security image is causing the hurdle in its economic activities.
Pakistan’s $250 billion economy is growing at the fastest pace in eight years but only attracted $1 billion in foreign direct investment (FDI) in the nine months to April.
Business establishments have flourished since 2014 on the improved security scenario. Economic boom could be witnessed in the urban areas with the increase in car sales and crowded shopping malls.
$46 billion to be invested in projects for the developments of roads and improving power sector as a part of China-Pakistan Economic Corridor (CPEC)
Saigol, founding partner of Baltoro Capital, which manages a new $48.5 million private equity fund, said foreign investors who finally take a serious look at Pakistan are often surprised.
“They say they have never seen a country or an economy the size of Pakistan with so little coverage, so under the radar.”