New Wounds Old Scars
It seems to be the age-old issue of corruption has become succinct with this complicated country. Currently, when one hears of Pakistan, two things come to mind a ‘corrupt government’, secondly a ‘hub for terrorism. These two areas have become synonymous when criticism is placed, the frustrated Pakistani populace is constantly tested, and therefore one cannot blame the Pakistani’s push towards extreme reasoning. The history of this country is fraught with conflict and the constant challenge of establishing stability, erstwhile always being consumed by failing leaders.
The mishandling of the economy, recent flooding, and previous earthquake represents a deep mistrust in the governance from the public. Presently Pakistani’s are faced with electricity and water shortages, the constant power outages are having a significant effect on services from schools to the operation of businesses. The cost of living has increased whilst wages are constantly being reduced; therefore there is a strong imbalance which is spiralling out across the country.
Having spoken to Pakistani’s in regions southwest of Lahore, there is a consensus that “the rising costs of food to fuel are affecting us severely”. In the currency market, the rupee weakened to 85.80/85 to the dollar, compared with Tuesday’s close of 85.75/79, following a rise in import payments. The rupee hit a record low of 86.50 last month, but dealers said the local unit may be stable in the coming days because of increased remittances from Pakistanis working abroad. However, analysts have uncovered a crackdown on illegal money transfer systems and incentives for overseas Pakistanis to use legal channels for money transfers.
Therefore, how can Pakistan achieve foreign investment when it is unable to present attractive opportunities? Pakistan is an emerging market that is rich in opportunities in the cotton clothing and agriculture markets, to household goods. However, if the relationship globally is weakened the open markets will only ensure barriers rather than the opportunity to ensure effective exportation of goods creating a profitable return. Currently Pakistan economy will miss several of its most important targets set for the fiscal year ending on 30th June, consequently one can understand the colossal challenges that Pakistanis are facing, and why they are not so optimistic about the future ahead.