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Now its official : Investing in "extremist" Pakistan very RISKY

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    Now its official : Investing in "extremist" Pakistan very RISKY

    Despite the PAKI government's efforts to persuade the international businesses to invest in Pakistan, the country continues to be rated as one of the riskiest economies of the world.

    In the latest quarterly survey by The Economist which assesses the risks of investing in 100 countries, Pakistan is rated as the fifth riskiest country to invest in, preceded only by Iraq, Myanmar, Kenya, and Indonesia.

    The Economist Intelligence Unit's (EIU) criteria includes a country's political structure, economic policies, sovereign data risk and the state of banking system. The EIU publishes its findings every four months.

    Besides the political instability in Pakistan, with the army rule in force, the latest reports of Shari or Riba banking law as mandated by Shariat court is also inhibiting the already scared investors.

    Many investors were burned in 1998 when former prime minister Nawaz Sharif's government decided to freeze all foreign exchange accounts in the wake of nuclear tests by India and Pakistan.

    Another reason for the poor investment ratings for Pakistan is due to the fact that the Western media is full of reports about the fear of extremist forces in Pakistan, which they contend are gaining strength which may bring Taliban-like system in the country.

    Although Finance Minister Shaukat Aziz has assured the investors that their investment would be safe and not subject to Riba banking laws but past experience has made the investors shy due to fragility of the economic system.

    The Financial Times in a report points out that "Pakistan's previous military rulers tried similarly to create a new political order in the hope of taking away powers from the country's top political families.

    They were suspected by politicians, however, of trying to create a lobby of supporters which would remain intact even under a civilian government. But the eventual departure of the generals was followed by the return of the very same people they wanted to sideline, only proving to many that building a new political order is much easier said than done."

    General Musharraf faces the added problem of being the first military ruler who must contend with the pressures unleashed by a weak economy, in contrast with previous military rulers who oversaw large sums of western aid flowing into the country, the paper said.

    (By the way, The above piece is from the DAWN, if that information makes the moderators happy)


    Sample response from my beloved Pakistani dost - our moderator :

    Is DAWN a credible site? Pakistani economy is the safest to invest in the world.


      What about the highly corrupt india..?
      must not be very risky ? Atleast somebody
      in Pakistan is trying to get rid of corrupt
      people (doesn't mattar if he is from army),
      but what would happen to a country like
      hindia where 90% leaders are there to take
      as much as they can ????? and nobody is there
      to control them... good work tehelka, I
      am sure we will be looking at some new faces
      real soon...
      There are only two forces in the world, the sword and the spirit. In the end the sword will always be conquered by the spirit. --Napoleon Bonaparte


        allright chilli

        dont invest in Pakistan. thanks for the info. I hope you and the other kind indians who have taken on the noble task of keeping us informed of all things Pakistani, had the chance to pull out your investments.

        P.S. I was not sure Indian 401k funds invested in pakistani mutual funds..oh well