No takers for Pakistan

By Amir Zia
Money Matters
The News
November 14, 2011

Pakistan’s reputation as the hub of global extremism and terrorism, its inconsistent economic policies, poor governance and rampant corruption – all have contributed to keeping foreign investment away from the country

Some of the once most lawless, poor and backward African countries have emerged as new zones of economic development and growth. Countries including Rwanda, Mozambique, and Nigeria are now among the sought after destinations for global investment and joint ventures. In South Asia, India is seen as an “economic power house” of the 21st Century. Indians now appear more interested in seeking joint ventures and investment opportunities abroad rather than trying to attract foreign money into their country. Many Indian business tycoons appear on a buying spree of world famous brands and companies. They are making their mark in the world and Indian economic success and growth is equated with China which is all set to overtake the United States as the world’s biggest importer.
Talk about the much smaller economies of South Asia, including Sri Lanka and Bangladesh. They too are witnessing an upward swing. These countries are pushing their exports and attracting foreign investment. The economies of Southeast Asia, including Malaysia, Vietnam and Indonesia, also have an economic success story to tell.
The other emerging economies – from the Middle East to Latin America – are all focusing on reaping the benefit of globalisation, economic integration, inter-dependence and regional trade. Where does Pakistan – the world’s lone Muslim nuclear power with a might army – stands in this economic race? Does our country – with a vast market of around 180 million people -- emerge on the radar of foreign investors? And most importantly, is our ruling elite serious in transforming Pakistan into an economic and trade hub? Lip service and wish-lists apart, are there any serious moves to push the country back into a high-growth trajectory?
The recent Commonwealth Business Forum (CBF), held in Perth, not just underlined Pakistan’s irrelevance when it comes to big business and money, but also exposed the ineptness and lack of will of our government and its institutions in pushing the country’s economic agenda.
The CBF provided Pakistan a rare opportunity to showcase itself as a trade and investment destination on such a big platform where more than 1,400 business and government leaders from 54 countries, including 16 heads of governments, participated over the three days – October 25-27.
The CBF’s country-session on Pakistan, held on October 27, proved an eye-opener as there was a clear lack of interest in the economic and investment opportunities which the country wants to offer. The session was attended by less than 50 people – almost half of them Pakistanis. Only a handful of foreign delegates, some of them from neighbouring India and a few others from Africa, attended the session. The Indians were there apparently more as a goodwill gesture or out of curiosity, while African delegates attended the session on the last minute urgings of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Senator Haji Ghulam Ali, who was upset at the low turnout and empty seats of the huge hall.
Minutes before the start of the Pakistan session, dozens and dozens of delegates had come out of the same hall after attending a similar session on Mozambique. Other country-specific sessions, including those of India, Malaysia and Namibia, attracted much bigger crowds.
This signifies the lack of interest among foreign investors and businesspeople in Pakistan which is now seen as a forgotten story, though the country was among the best performing economies of Asia till 2007.
Pakistan’s reputation as the hub of global extremism and terrorism, its inconsistent economic policies, poor governance and rampant corruption – all have contributed to keep foreign investment away from the country.
The numbers are telling. From the highs of 8.42-billion-dollar net foreign investment in financial year 2007, it slumped to a meagre1.91 billion dollars in FY 2011.
The problem is compounded by the fact that there appears no drive and no vision among the economic managers to change the perception about Pakistan for the better. The CBF proved one of this missed opportunities in which the government officials, including those affiliated with Pakistan’s embassy in Australia and those who frequently take joy-rides on the national exchequer, hardly made any effort to push and market this session about their country. All was left up to the CBF organisers, who could provide the platform and announce the event, but expecting them to lure participants to the hall was perhaps too much to ask for.
Indeed, Pakistani speakers comprising Abdul Razak Dawood and Mian Mohammad Mansha, two of Pakistan’s leading business minds, along with Tariq Puri of the Trade Development Authority of Pakistan, pleaded Pakistan’s case well, but their show was in front of mostly empty chairs.
The participation of businesspeople from Pakistan also remained slim – just half-a-dozen. This was an event where, according to the organisers, around 10 billion dollars worth of business and investment deals were signed. Countries much smaller than Pakistan – both in terms of population and size of the economy – had much bigger and more aggressive participation at the CBF, which is one of the top three international forums of the world.
In most formal and informal interactions at the CBF, investors and officials from other countries were more interested in discussing al Qaeda, the Taliban, security issues and the crime rate in Pakistan. Is Pakistan drifting toward anarchy? Are the extremists in a position to take over the country or parts of it? Is the army sponsoring the Taliban? Do you really believe that no one in your military establishment knew about Osama bin Laden? Tell us about your president…? While some of these questions appear bizarre given they are about a country which has suffered the most due to terrorism, yet they showed how the world sees Pakistan. Such questions also underscore our inability and failure in changing the perception and our reality for the better.
In today’s world in which the buzzwords remain investment, trade and economic growth, Pakistan is hardly mentioned on international forums or if mentioned, it is for all the wrong reasons.
How can Pakistan and its economy be brought on the front-burner globally? For this, our ruling elite must bring the economy to the forefront on the domestic front. This is one of the biggest challenges the country faces today, but no one seems ready to throw down the gauntlet.