ISLAMABAD, Nov 5: Many private sector trade and financial delegations have cancelled their scheduled visits to Pakistan following imposition of emergency in the country, Dawn has learnt.
Moody’s International--an international credit rating agency-- has put Pakistan on a watch list, government’s economic spokesman Dr Ashfaq Hassan Khan confirmed.
Now the rating agency would analyse the country’s political indicators before giving any rating on economic performance of the country.
This was the expected fall-out and would be a disturbing development at a time when Pakistan was fast becoming a destination for foreign entrepreneurs and investors, commercial circles said, citing foreigners’ worries about legal guarantees in the new situation.
Their fears were aroused by the arrest of lawyers and political workers, which they feared could lead to instability in the country in the days ahead.
Informed sources told Dawn on Monday that a 12-member delegation of small and medium size companies have cancelled their trip to Pakistan due to imposition of emergency in the country.
“The team was about to board a plane at Frankfurt airport, but it cancelled its trip on receiving information about imposition of emergency in Pakistan,” the sources said.
The delegation was scheduled to have meetings with officials of board of investment (BoI), engineering development board and traders of Islamabad Chamber of Commerce and Industry (ICCI) to explore ways and means for possible investment in automobile and engineering sector.
This visit was planned for a long time and cancellation is not a good omen for the country where already people are scared to invest for various reasons, the sources said and added new date would not be announced until the restoration of democratic led government.
A German-based Metro Company is intending to open retail outlets in Pakistan with an investment of $240 million. The first retail outlet was recently inaugurated in Lahore, to be followed by another by end of the current calendar year.
Bilateral trade between Pakistan and Germany is likely to touch $2 billion mark this year. This was expected to grow further following indication that more products would be traded between the two countries.
Advisor to Finance Ministry Dr Ashfaq Hassan Khan confirmed that officials of the Moody international have cancelled their planned visit to Pakistan to review economy of the country.
He said when the situation will stabilise in Pakistan, officials of this credit agency would visit Pakistan for consultation with economic managers.
Asked about the cancellation of Netherlands aid to Pakistan, the advisor said the news was not correct, quoting the secretary economic affairs division, who said the news was based on ‘rumours’.
Many more proposed visits of private sector delegations from various countries, including Russia, are also expected to meet the same fate as the law and order situation is expected to deteriorate further due to continuous strike of lawyers, and politicians struggling for independence of judiciary.
When contacted, foreign office spokesman Mohammad Sadiq said he was not aware of any travel advisory being issued to nationals of any foreign country in the wake of emergency in Pakistan.
“We are monitoring the situation about the outcome of emergency. So far, there is no news about new trade advisory except those in vogue for the last many years,” he added.
However, he confirmed that the proposed defence-related meeting between Pakistan and United States has been postponed due to the same reason.
