KARACHI/LAHORE – The economic managers of Pakistan, haunted by official and unofficial forecasts that the country’s external accounts could deteriorate in the rest of FY11, must have sighed in relief after the release of CIA operative Raymond Davis on Wednesday.
The traders, businessmen, stock brokers and analysts also welcomed the Wednesday’s release of Davis expecting that the move would help Washington and Islamabad ease a lingering diplomatic strain that would certainly augur well for the latter’s ailing economy. The analysts and stock brokers believe that the widely-expected development would reflect positively on the volatile equity market where much of the foreign portfolio investment, almost 80 percent, come form the United States.
According to analysts like Khurram Shehzad Pakistan can now hope for the immediate release of the US funds under Coalition Support Funds and Kerry-Lugar aid package. “The impact would of course be positive that would ease diplomatic tension between the two countries leading to the release of US funds under CSF and Kerry-Lugar Act,” viewed Shehzad, an analyst at InvestCap Research.
The traders and businessmen from Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Karachi Chamber of Commerce and Industry (KCCI) also welcomed the release of Davis as a “good gesture” for the country’s industry. “A big controversy has finally resolved in an amicable way,” said Khalid Tawab, FPCCI vice president.
Former chairman Kornagi Association of Trade and Industry, Mian Zahid Hussain termed the development a good gesture. KCCI President Syed Shafique said the businessmen were holding a meeting at the chamber that would also discuss the release of Davis.
The Lahore-based Businessmen, traders, stock brokers and experts have termed also the release of CIA contractor Raymond Davis a good omen for the economy. Talking to Pakistan Today on Wednesday, Former Federal Finance Minister Dr Salman Shah said that the Davis affair had been an irritant in the Pak-US relations had to be removed, adding that with him turned loose, the diplomatic stand-off between two countries would reduce.
He predicted the process tri-lateral talks in Afghanistan, US aid under Kerry Lugar Bill would also be initiated in coming days. Lahore Stock Exchange Member Asif Baig Mirza said that the decision to the release Raymond Davis would leave positive impact on stock markets in the country.
All Pakistan Anjuman Tajiran General Secretary Abdul Razaq Babar said since Islam allowed the blood money, the settlement was upright. Lahore Sugar Dealers Association President Asghar Butt was also of the view that if the complainants had been compensated there must not be any criticism to Davis release.
