With negative western press depicting a country on the brink of social and political turmoil, it will take more than economic stability to restore investor confidence in
Those in the western media automatically link the name Pakistan with lawlessness and imminent collapse ‘Pakistan on the brink’ and ‘Turbulence engulfs Pakistan’ could be inserted as default headlines on almost any US or European newspaper. For most commentators, Benazir Bhutto’s assassination last December was the final straw.
Analysts close to the situation, like economist Ahsan Chishty at Standard Chartered in
Political murders rarely trigger a country’s collapse. Witness the shootings of Indian prime minister, Indira Gandhi in 1984. Nor should one ignore the assassinations of four
That is not to imply that all is well in
Moody’s analyst Aninda Mitra believes that Bhutto’s murder could prolong the damage to investor confidence as well as the level of domestic economic activity. “Moody’s lowered the outlook on
The loss of prime minister Shaukat Aziz may, in the long-term, prove more damaging to
Musharraf is expected to stay on as president after the election. The former army chief undoubtedly has one of the world’s toughest jobs, having to appease an assortment of unenviable constituents, from George Bush to home-grown Islamist fanatics and a restless army. Musharraf’s most demanding task, however, may be putting together an economic team capable of restoring investor confidence in