The corruption, energy shortage were also there during 60's, but Pakistan economy was still thriving. The terrorism is bad publicity, and anything you invest in Pakistan might get blown out by terrorists, and that's how the investors see it. I mean if i have had billion dollars, i wouldn't invest in Pakistan right away except in certain areas where they are safe and capable for long term; free from TTP's inflence. Mirpur in Azad Kashmir is thriving for the same reason that Karachi is not.
Solve terrorism and the investment will come; numerous investments. There have been some huge investments in Lahore, and some areas of Pakistan as Punjab is relatively safe compared to others.
No terroism in 90's while economy was shit even then,. Also in Musharaf era Pakistan growth rate was great, economy can improve even in this kind of terrorism. Last 5 years economic slow down blame goes to PPP mostly.
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