KARACHI, Sept 10: The performance of Pakistan’s economy after 9/11 events remains robust as its key economic indicators have shown a constant growth and a strong resilience to face the recessionary economic circumstances.

“Pakistan’s willingness to participate in the US-led war against terrorism has had its effect on the political standing, economic situation and financial markets of the country,” said Muhammad Suhail, head of research at InvestCap, while talking to Dawn on Tuesday.

He said the country now had the support of $7.5 billion foreign exchange reserves, healthy and rising remittances ($2.4 billion in 2001-02), and massive debt re-profiling.

On debt and foreign assistance front, Mr Suhail said the $12.5 billion Paris Club debt-rescheduling, $1 billion write-off promised by Washington, and $600 million grant by the US had played their part in reducing the burden on the economy.

He said money supply grew by an amazing 15 per cent in 2001-02 (due to dollar inflows), and inflation was maintained at a historic low of 3.5 per cent.

“Exports and imports were impacted, but the country managed an encouraging $9.1 billion in exports in 2001-02,” he said. “The first two months of the current financial year showed a marked rise in exports to $1.7 billion.”

Mr Suhail said although the KSE fell sharply after the US began retaliatory attacks on Afghanistan, a confident recovery had made it one of the best performing stock markets worldwide with a gain of 59 per cent since Sept 11, 2001.

Zaheer Uddin Khalid, research head at First Capital Equity, said a number of positive developments had taken place after the 9/11 events. “The crackdown on the ‘Hawala’ and ‘Hundi’ system in the UAE has led to the channelling of remittances through the banking system, resulting in strengthening of the rupee against the dollar in the inter-bank market, now 7.2 per cent stronger since Sept 11,” Mr Zaheer said, adding “On an overall the impact of 9/11 events has been positive for Pakistan’s economy”, Mr Zaheer said.