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Business

Pakistan's rising economy has an image problem

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Opening sequence

Business

Pakistan's rising economy has an image problem

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COMING UP:Pakistan's rising economy has an image problem

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Transcript

00:00:02
>> After ten years of conflict, things are looking up for Pakistan. It's Asia's top performing stock market this year and its economy is growing. But when it comes to bringing in foreign investment, there's a fly in the ointment. As Reuters Drazen Jordic reports from Islamabad, the country has a major image problem.
00:00:19
>> Many foreign investors and foreigners in general associate Pakistan with some of the problems it's had over the last ten years, mainly attacks by Islamists, the Pakistani Taliban, the death of Osama Bin Laden in Pakistan. And difficult relationship with the United States and other western countries and this image problem is basically hampering Pakistan as it tries to rebuild its economy.
00:00:45
An economy that is now growing at a fastest pace in about eight years.>> A drop in filing to tax and a growing middle class have given growth a big boost. And some foreign companies are looking interested, like carmakers Renault, Nissan, and Suzuki. But when it comes to the stock market, investors have long memories.
00:01:03
>> In 2008, Pakistan's stock market began to collapse. The share index was in free fall and Pakistani officials imposed a floor on the stock exchange. Which basically means that they limited withdrawals and trapped investors in the falling stock market for about three months time. That unnerved investors and led the huge outflows.
00:01:27
>> The government has pushed through new reforms, saying the same mistake will not be made again. But foreign investors haven't returned in droves, even though the stock market has delivered a 500% increase since 2009. But there may be help ahead. The MSCI Index is getting ready to upgrade the country from frontier economy to emerging market status.