Daily Times

Prime Minister (PM) Yousuf Raza Gilani’s visit to Britain to strengthen ties is aimed, among other things, at reviving the anaemic economy of Pakistan. Political and security instability has made Pakistan an anathema for investors. Half the time that Gilani spent in Britain went into making the leadership of the country understand the resolve and sincerity of Pakistan to fight terrorism. Osama bin Laden’s presence in Pakistan, improvised explosive devices and the blocking of NATO supplies were the backdrop against which trade and investment opportunities were discussed. Under the rubric of the Enhanced Strategic Dialogue, Pakistan and the UK have decided to enhance bilateral trade from Pounds 1.4 billion to 2.5 billion by 2015. On signing the Trade and Investment roadmap, the PM has assured the political and business community in Britain that an “enabling” business environment would be provided to British investors in Pakistan. How does Gilani’s government plan to do that is yet to be seen. The situation is such that foreign investment has dwindled to $ 516 million in the first nine months of fiscal year 2011-12, a 65 percent dip against last year when foreign investment stood at $ 1.46 billion. History binds Pakistan and the UK in a durable knot. This historical relationship has come into play many times in restoring ties between Pakistan and the US whenever estrangement between the two increased. In the wake of Gilani’s visit, if NATO supplies are restored, the ‘loss’ will be more than compensated by attending the NATO conference in Chicago and of course the potentially restored US aid. Already, Gilani has asked Britain to provide financing for the development of Balochistan, FATA, and Khyber Pakhtunkhwa. Now that leading European countries such as Spain and Germany are expressing reservations on the special concessionary package given to Pakistani textiles by the EU in the aftermath of the 2010-11 floods, our relations with Britain and consequently with the US and the EU take on enormous importance.

By beating the drum of having lost the most in the war on terror, we are not going to see money falling into our lap. We have to ensure ease of doing business and safety to investors. Investor confidence is key. Towards this end, the first step is tackling the energy shortfall and improving law and order. Both require political will. With the help of countries like Britain we can overcome these twin problems. If British Prime Minister David Cameron could help us in bilateral mode as well as with the US and in the EU, it would go a long way towards tackling some of Pakistan’s dire problems and getting us out of the hole we have dug for ourselves because of faulty political and security policies. *