Pakistan at the crossroads
At no other time in its 62 years has the survival of Pakistan looked so fragile. Events of the last few months have generated media headlines of „failed state‟ and „Pakistan on the brink‟ with the more alarmist observers pointing to a possible scenario of the „Balkanisation‟ of the country. International perception has been badly (some say irretrievably) damaged with the consequent impact on foreign direct and institutional investment.
But are things as bad as they appear?
On the ground, the answer appears not. Take Karachi, for example, where the business and social life continues apace in the commercial centre and port of 20 million people. Here there is little outward display of the fight against the threat of Talibanization apart from increased security at hotels and frequent police check points. In Islamabad the atmosphere is different; highly visible security counter measures make the country‟s political and diplomatic enclave look as though they are facing a civil war. Which in the sense they are.
A multitude of internal and external threats face the country. Upon closer examination there is broad similarity with those threats that faced the country in the volatile 1990s: then the Army over-threw two successive democratic governments; war with India was imminent on more than one occasion; Pakistan tested its nuclear capability in response to India‟s own tests; factions of the MQM in-fighting in Karachi left an average of 23 dead daily; and US cruise missiles violated sovereign air-space as they flew towards the caves in Afghanistan; then to add to its woes the Asia Financial Crisis ripped into the fragile economy in 1997 and Pakistan was again back in the arms of the IMF.
The country is challenged and many say that Pakistan is the crossroads. More informed observers though will ask „When has it not been?‟ The biggest threat to Pakistan is from within: it is politically fractured; the economy is fragile and its internal security is threatened. Pakistan is not a country that can be ruled homogonously and last month‟s decision over the administration of the SWAT Valley is an example of this.
Yet there is a prevailing sense of nationhood amongst it people and its institutions. There is a point below which the country never manages to descend and its fragile unity remains in tact. Perhaps it is more apt to describe Pakistan as a flailing state rather than a failing state.
In Part II, the next article will examine the factors that keep Pakistan together and why there is more cause for optimism. The author, Charles Blackmore, advises foreign companies on Pakistan and is available for selective assignments.
Posted date 07-04-2010
Articles
- Libya
- From Switzerland to Singapore
- Page Group Opens New Middle East Office
- Alan Jenkins Welcomed as Head of Advisory Board
- UK Bribery Act
- The UK Bribery Act The Steps We Should Take
- Kabul City
- Evacuation and Crisis Planning
- Bribery Act Guidance Notes
- Haiti One Year On
Archives
2011
May
March
July
February
December
2010
September
November
July
April
2009
January
Libya
The spectre of Libya as an attractive market opportunity for foreign investment in the aftermath of regime change does raise difficulties for verifying the sort of information and procedures necessary to protect investors from FCPA and Bribery Act infringements; indeed, to protect them from losing money and reputation.From Switzerland to Singapore
There is an eastward shift underfoot in the world of private banking. As pressure builds in Europe against bank secrecy and tax evasion, parts of Asia are cropping up as the new favoured private banking centres. A report published by PwC in June 2011 estimates that Singapore is set to take the slot as the world’s top wealth manager by 2013Page Group Opens New Middle East Office
Page Group is pleased to announce the opening of our new Middle East office providing due diligence, background checks, asset tracing and investigations along with security advisory and reviews.Alan Jenkins Welcomed as Head of Advisory Board
Alan joined Page Group as head of the advisory board in the autumn of 2011. He has had a long and distinguished legal career, retiring as Chairman of Eversheds LLP in April 2010.UK Bribery Act
The UK's Bribery Act comes into force today.The UK Bribery Act The Steps We Should Take
This month Page Group’s legal advisor takes a practical look at the Bribery Act and what steps businesses can take to prepare themselves. The new legislation will come into force on 1 July 2011. Sensible companies will be reviewing the steps they can take to minimise adverse effects on their business or even, in an extreme case, the risk of a prosecution under the Act. After some delay, government guidance has been provided as to the ‘adequate procedures’ expected to be in place to reduce the risk of their business being adversely affected by bribery.Kabul City
In this and forthcoming newsletters, Page Group will feature on-the-ground accounts by personnel deployed by our company in different regions. This month, our country manager in Afghanistan has provided an insight into what conditions are like in Kabul, filling a gap in many people’s understanding of what actually takes place in the city which is so often the subject of daily headlines.Evacuation and Crisis Planning
Companies, non-governmental organisations and individuals may be surprised to learn how quickly they can become caught up in a crisis caused by hurricanes, floods, tsunamis, volcanoes, hazardous material or nuclear accidents, terrorist activity, kidnappings, civil war, ethnic violence, political turmoil, coups d'état, or uprisingsBribery Act Guidance Notes
The Ministry of Justice has finally released the Guidance Notes linked to the Bribery Act. The full details can be found at the following url: http://www.justice.gov.uk/guidance/bribery.htm. Companies will now have until 1st July 2011 to ensure compliance with the Act.Haiti One Year On
A year on from the earthquake and Haiti remains in a state of almost perpetual flux. Many hoped the New Year would have heralded a new beginning and a new political situation that would promote investment and be the catalyst for infrastructure rebuilding; sadly little has changed for the thousands of displaced homeless that still inhabit the public spaces. These shanties, made of makeshift shelters and tents, are threatening to grow into townships commanding their own blend of justice and hierarchy.






