The US intelligence sees a mixed picture of Pakistan with upcoming elections and continued counterterrorism operations as positive indicators for the South Asian country, while a woeful lack of tax reforms as the major obstacle in the way of its sustainable economic growth.
Islamabad has not been able to institute much-needed policy and tax reforms, and the country faces no real prospects for sustainable economic growth, James Clapper, director of National Intelligence, claimed at a Congressional hearing.
At the same time, he told the House Permanent Select Committee on Intelligence that the country was moving towards its landmark democratic elections and continued to carry out counterterrorism operations along the Afghan border.
“On a more positive note, this past year the Armed Forces continued their operations in the Federally Administered Tribal Areas, or FATA, which have been safe havens for al Qaeda and the Taliban, and Pakistan has scheduled national and provincial assembly elections for May 11,” he said.
On Afghanistan, he assessed that the Taliban-led insurgency has “diminished in some areas of Afghanistan but remains resilient and capable of challenging US and international goals”.
In addition, Afghanistan’s economy, helped by foreign aid over the years, will suffer after 2014 drawdown of international forces.