Following reluctance from a number of foreign investors in accepting Pakistan''s sovereign guarantee, Asian Development Bank (ADB) has come forward with a solution to Islamabad''s worries by agreeing to become a third party guarantor for Pakistan to ensure the private sector investors that their investment is fully protected in this country.
This decision of ADB, which has a mandate of providing financial assistance to developing countries for projects or schemes which fall under its purview, to become a third party guarantor for Pakistan is an extraordinary development. This development carries a disturbing message for the world in general and for Pakistani in particular.
Reliable sources revealed that a number of foreign investors had categorically refused to accept Pakistan''s sovereign guarantee. First and foremost reason is Pakistan''s visibly worsening law and order situation and negative forecast of Pakistan''s future by some of the international organisations. This situation is a serious question for those who are in power corridors. It has also become a serious cause of concern for Pakistanis as a nation.
An official on a senior position in the government said "We have faced with a difficult situation wherein the country either has to request some credible institution like ADB to extend guarantee to foreign investors to get much- needed investment or let the investor stay outside and make his own guess about Pakistan''s future. Sanity demands that the government needed to go for the first choice and for the same reason ADB was requested to play a role for Pakistan and act as its guarantor which is accepted and now onward ADB will offer guarantee to those foreign investors on Pakistan''s behalf who instead of Pakistan''s sovereign guarantee are demanding a third party guarantee for investing in Pakistan." The official claimed that the first-ever such guarantee by ADB will be offered to a foreign investor shortly.
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