Pakistan Country Report 2016
Pakistan has seen a visible economic turnaround over the last three years, due to the successful implementation of a comprehensive programme of economic revival to enhance economic growth and achieve sustainable development.
A frontier market that was flirting with insolvency just three years ago, is now in rude health. Investment is flooding into Pakistan from China, the West and the Gulf, attracted by high returns, rising stability and an economy underpinned by strong growth figures and a pro-business government.
Chinese investment has transformed Pakistan as an FDI destination. With the number of terror attacks falling and the northern borders about be opened up, Pakistan will become a major trading nation in the decades ahead, further boosting inflows of investment capital.
Pakistan is set to become one of the world’s great economies, benefiting the $46bn China-Pakistan Economic Corridor, which will link Beijing with the Indian Ocean overland for the first time. An influx of Chinese — and global — capital will boost growth and foreign direct investment, buoy the construction sector, and help transform Pakistan from a nation of separate and often fractured provinces, into a single, co-ordinated, consolidated country
Pakistan has long been considered an energy-poor nation. But oil, gas and coal finds, offshore and onshore, and major new port facilities and pipelines stretching the length of the country, could be set to transform the South Asian sovereign into a major energy player of the new century.
Pakistan’s banking sector is in its best shape for years, as bad loan ratios fall, capital adequacy and profits rise, and new legislation allows lenders to process a logjam of bad assets that has long bedevilled the system
Pakistan’s capital markets are back in business after a few lean years, with M&A deal volume and the Karachi Stock Exchange at record highs, and investors chasing yield in a country now promoted to MSCI ‘emerging market’ status. Rules passing through parliament are expected to underline the country’s reputation as a great place to do business
Publisher: Oliver Hawkins
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