‘Pakistan bashing main hindrance in FDI’

LAHORE: Experts have criticised ‘Pakistan bashing’ on economic aspects that are commended by credible institutions, and termed it a hindrance in foreign direct investment.
They were referring to the statement by the Institute of Policy Research (IPR), headed by former commerce minister Humayun Akhtar Khan.
The IPR statement referred to a recent salutary column on Pakistan’s economy in a newspaper by Jeffrey Franks who until recently was IMF mission chief in Pakistan.
The improvements in the economy that Frank cited in his column were disputed on technical ground by the Institute of Policy Research think tank although the findings otherwise were well documented.
Economist Faisal Qamar said that creditable global institutions rarely express positive views about Pakistan’s economy.
The declined inflation that Franks appreciated is not solely because of the decline in the global oil and commodity rates, but the present regime’s efforts to reduce deficit and refrain from increasing money supplies contributed as well.
Qamar added that during the past six months, the State Bank of Pakistan (SBP) reduced policy rates by two percent, but it did not trigger inflation as government’s fiscal policies were supportive.
While the former IMF mission chief commended economic growth, the Institute of Policy Research experts pointed out the 12 percent fall in exports in the past two months.
However, Qamar added, the IPR conveniently ignored the declined exports in both India and Bangladesh. This, he attributed to the fall in euro value.
He said that though Pakistan and all other countries of the region benefitted from the lower oil and commodity rates, they also suffered from the euro’s depreciation.
Qamar said Frank appreciated the increase in tax revenues that showed a 10 percent this year, but the Institute of Policy Research highlighted that the increase was still below target.
The Institute of Policy Research, while criticising government performance in the power sector, failed to mention the reduction in circular debt to below Rs200 billion, Qamar pointed out.
Interestingly, on Thursday, former governor SBP Dr Ishrat Hussain had also advised people and media to refrain from creating a negative image of Pakistan.
He said that the bleak picture portrayed on media is relayed by international think tanks to investors.
These opinion makers simply put forward the clippings of our media and recordings of our channels about the dire state of the economy and law and order in the country.
“They do not have to put in their own opinion, as media reports from Pakistan are enough to deter the investor,” he added.