FAISALABAD, May 24: Noted economist and former adviser to prime minister on finance Dr Salim M. Khan said on Wednesday the deteriorating law and order situation was the major hurdle in domestic and foreign investment.

He told journalists that the rising number of terrorist incidents and sense of insecurity among the businessmen were the reasons for the world organisations to dub Pakistan as a failed nation.

He said the claims and presentations about statistics of the national economy had become a jugglery of words and political drama at the cost of foreign investment. “The genuine figures about the economic development and policies could play a pivotal role in boosting the national economy but we have used this trick for personal and political gains.”

He claimed that the present regime had claimed the increase of per capita income up to $736 which was contrary to the UN report.

He said the government had announced a huge increase in the GDP rate, export volume, foreign and local investment, trade relations with other countries. “But the fact remains that the lives of the poor people have become miserable due to increase in the prices of daily use items and utility services.”

He said the education was the only instrument for the long term economic development but the government threw this sector in peril which could be judged from the fact that in 1990, the share of education in the budget was 2.6 per cent which had been decreased to 1.8 per cent in 2002.

Replying to a question, he said it was a wrong notion that a banker or a businessman could lead a nation and could strengthen the economy which was evident from the experiences of Italy and Thailand.

He stressed the need for revival of a true political set up and strengthening of the democratic institutions for reviving the national economy.