PAKISTAN IS A REFORM STORY LIKE INDIA’S-ONLY BETTER

Shared by, Syed Ehtisham

Construction and infrastructural development have been cited as the primary drivers behind Pakistan’s emergence as a frontier market by a Bloomberg report.

The construction sector grew at 11.3 per cent through FY14-15, nearly double the 5.7pc target, according to State Bank of Pakistan data.

London-based chief economist at Renaissance Capital Ltd Charlie Robertson said of Pakistan: “It is the best, undiscovered investment opportunity in emerging or frontier markets,” adding, “What’s changed is the delivery of reforms ─ privatisation, an improved fiscal picture and good relations with the IMF.”

Nawaz’s government has boosted infrastructure expenditure by 27pc to Rs1.5 trillion for fiscal year 2015-2016 (FY15-16), as interest rates are the lowest they have been in 42 years and the economy is expanding at its quickest since 2008.

Pakistan is a reform story like neighbouring India’s, but only better, said Renaissance’s Robertson.

Read more: Ishaq Dar eyes 7pc growth by tenure end

Cement producers DG Khan Cement Co. and Cherat Cement Co. have announced plans to expand, while steelmakers Amreli Steels Ltd. and Mughal Iron and Steel Industries Ltd. are raising equity capital.

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