Quite in line with the market expectations, Pakistan Eurobonds received an overwhelming response from the foreign investors whereby reportedly the bonds were oversubscribed and offers worth $5.2 billion were put forth by the foreign investors.
By happy chance, it all started off when PML-N took hold of the driver’s seat to direct the unsound economy of Pakistan on the right path. And in less than a year, the government has been able to earn a myriad of applause by bringing the ailing economy of the country back in at least decent health.
Foreign institutions are wild-eyed about investing in Pakistan. And why not! The macro-economic indicators of the country are showing signs of revival which has instilled business confidence and the sentiments of investors. Recall that not long ago a China based company expressed its intentions to invest in textile and energy sectors of Pakistan. And now the insurance sector is in the limelight.
Talking of apple to apple comparisons, Pakistan is no longer compared to the likes of Sri Lanka, India, Bangladesh, etc. The IMF last year created a new analytical region MENAP, including Afghanistan and Pakistan in the MENA region. The IMF recent World Economic Outlook 2014 report hints at MENAP region turning a corner in 2014-15, having witnessed tepid growth of late.
While the Islamic banking industry is making significant strides-achieving double-digit growth of over 21 percent year on year in CY13-one spectacular revelation recently made by the SBP was the phenomenal jump in the share of Islamic banking in the remittances flowing into the country.
An average Pakistani household is an optimist. This is a broad generalization and not often a great idea, but this is what a cursory look at the SBP Consumer Confidence Index surveys reveals. The consumer confidence-which measures households perceptions relative to six months in the past and in the future about personal financial conditions, the overall economy, unemployment and consumption of durable goods--stands at an all-time high.