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Summary Security situation is being considered as one of the biggest hurdle for foreign investors.
One positive change that has emerged in last few months is the considerable improvement in law and order situation of the country.This can be gauged by the fact that suicide blasts, which are considered to be the most lethal form of terrorist attacks, have reduced in 2011.This will somehow provide breather to local and foreign investors where political and ongoing energy issues are already hampering investment climate.Pakistan’s investment to GDP ratio has fallen to 13.4% in 2011 from a high of 22.5% in FY07.45 suicide attacks in 2011, down 34%According to the data compiled by Pakistan Institute of Peace Studies (PIPS) total of 45 suicide attacks took place at different places in Pakistan in 2011 as compared to 68 blasts/attacks occurred during 2010.This translated into a massive decline of 34%, thanks to the prolonged military operation in border part of Pakistan and Afghanistan.Moreover, there is marked improvement in security situation in last 2 years as frequencies of these blasts have reduced to almost half.
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