The security situation in Pakistan is being considered as one of the biggest hurdle for foreign investors. One positive change that, according to analysts, has emerged in last few months is the considerable improvement in law and order situation of the country. “This can be gauged by the fact that the frequency of suicide blasts had reduced by 34 per cent in 2011,” said Farhan Mahmood of Topline Securities.
This, the analyst said, would somehow provide a breather to local and foreign investors where political and ongoing energy issues were already hampering the investment climate. “Pakistan investment to GDP ratio has fallen to 13.4 per cent in 2011 from a high of 22.5 per cent in FY07,” he said. Referring to the data compiled by Pakistan Institute of Peace Studies (PIPS) Mahmood said, a total of 45 suicide attacks took place at different places in Pakistan in 2011 compared to 68 blasts/attacks occurred during 2010. “This translated into a massive decline of 34 per cent, thanks to the prolonged military operation in border part of Pakistan and Afghanistan.” Moreover, there is a marked improvement in the security situation over the last 2 years, as frequencies of blasts have reduced to almost half. Interestingly, suicide attacks have reduced significantly overall the last couple of months. “This is primarily due to the ongoing peace talks by US and Pakistan with the insurgent groups, according to media reports,” the economic observer viewed.
