Fragile Confidence

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Foreign investment, especially in emerging economies, is never just about interest rates and macroeconomic data—it’s about trust.

Foreign investment, especially in emerging economies, is never just about interest rates and macroeconomic data—it’s about trust. Despite signs of improving economic indicators, three major nations have pulled $1 billion from Pakistan’s treasury bills in recent months, underscoring the depth of the trust deficit that continues to plague the country. The message is loud and clear: growth on paper means little when political unrest and deteriorating law and order are the backdrop.

This erosion of investor confidence is not merely unfortunate—it is telling. It reveals how central political stability is to economic resilience. It doesn’t matter how attractive returns may be if the broader context is marred by institutional chaos, infighting, and violence.



In the current global climate, where risk appetites are already cautious, no investor is going to bet on uncertainty dressed up as opportunity. Gang arrested, items worth Rs3m recovered The situation also underscores a simple yet stubbornly ignored truth in our policymaking circles: no amount of technical tweaking will work unless there is unity, clarity, and a shared commitment to national interest. We cannot keep pretending that economic performance exists in a vacuum.

When politics remains paralysed and terror incidents surge, capital takes flight. We hope this serves as a wake-up call for all internal stakeholders. The cost of ego, short-term point-scoring, and endless brinkmanship is being paid by the economy and, ultimately, by the people.

It is imperative that all parties sit down, compromise, and prioritise the country over personal or party agendas. Until then, expect foreign investors to continue walking away—quietly, but decisively. Tags: fragile confidence.