By IANS
Islamabad : Investments in countries like Pakistan may face “increased risk” during 2008, according to a report by a British consultancy firm.
In its report, Control Risks rates 57 percent of emerging markets at medium political risk or above, indicating significant threats to foreign investment, The News reported Saturday.
The report, titled RiskMap-2008, has identified a trend in these countries towards economic nationalism – the promotion of national interests in economic policy.
“The vast majority of countries worldwide are classified as emerging markets where, increasingly, national political agendas will impact the operational effectiveness of foreign investors,” the report said.
According to it, in many cases trends towards economic nationalism, a retreat to dictatorship and reform fatigue are prompting concerns that politics will increasingly interrupt on investment decisions.
“Investments in countries as wide ranging as Russia, Pakistan, Nigeria and Ecuador, could be at increased risk during the year 2008,” it said.
The report says that Asia was gearing up for another election cycle of great significance, including critical ballots in Thailand and Pakistan, with investor concerns over political and security risks on the rise.
Control Risks, an independent, specialist risk consultancy with 18 offices in five continents, released its report this week.