Pakistan economy could face steeper downturn
The growing political instability and cautiousness of investors in the wake of imposition of emergency in Pakistan could adversely impact its economy which has averaged seven per cent annual growth over the last five years.
By PTI |
NEW YORK: The growing political instability and cautiousness of investors in the wake of imposition of emergency in Pakistan could adversely impact its economy which has averaged seven per cent annual growth over the last five years.
Noting that the economy has continued to hum despite some of the country's worst unrest in years, a leading financial daily said the outlook is no longer rosy now because of uncertainty about foreign aid and investors' growing anxiety.
One of the potential problem, it said, is foreign investors could be more cautious about pumping money into a country that is apparently becoming less stable and more authoritarian.
An analyst at credit-ratings agency Moody's Investors Service Inc. said it would continue to review Pakistan's sovereign debt in light of its political situation.
"The ratings of Pakistan have always been under review given how turbulent the situation has been," said the analyst, Aninda Mitra.
"Last year, Pakistan enjoyed record inflows of foreign direct investment as banking, telecommunication and property markets boomed," the daily said.
Partly because those investment numbers were so high and party because of worries about nation's stability, foreign investment slipped in July-September period from a year earlier by 10.8 per cent to $990.1 million.
There are now fears of a steeper downturn after emergency rule and an escalating Islamic militancy that has targeted both soldiers and civilians with suicide attacks.
Noting that the economy has continued to hum despite some of the country's worst unrest in years, a leading financial daily said the outlook is no longer rosy now because of uncertainty about foreign aid and investors' growing anxiety.
One of the potential problem, it said, is foreign investors could be more cautious about pumping money into a country that is apparently becoming less stable and more authoritarian.
An analyst at credit-ratings agency Moody's Investors Service Inc. said it would continue to review Pakistan's sovereign debt in light of its political situation.
"The ratings of Pakistan have always been under review given how turbulent the situation has been," said the analyst, Aninda Mitra.
"Last year, Pakistan enjoyed record inflows of foreign direct investment as banking, telecommunication and property markets boomed," the daily said.
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Partly because those investment numbers were so high and party because of worries about nation's stability, foreign investment slipped in July-September period from a year earlier by 10.8 per cent to $990.1 million.
There are now fears of a steeper downturn after emergency rule and an escalating Islamic militancy that has targeted both soldiers and civilians with suicide attacks.
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