Sweden’s Ambassador to Pakistan, Henrik Persson, stated that security concerns are a major factor for Swedish companies considering investments in Pakistan. Speaking at a stock event in Karachi, he noted that although there are only a few Swedish businesses currently in the country, each one thoroughly evaluates the security situation before proceeding with operations.
Ambassador Persson mentioned that Swedish companies frequently inquire about security issues. He provides them with detailed explanations of the geographical distinctions between Balochistan, Karachi, and Lahore.
He expressed optimism about future joint agreements that could facilitate Swedish investments, particularly in Pakistan’s textile sector, which he highlighted as a promising area.
The ambassador praised the Securities and Exchange Commission of Pakistan (SECP) for its role as an effective regulator. He emphasized the importance of market liquidity, noting that Exchange-Traded Funds (ETFs) would introduce new liquidity into the market, positioning them as a cost-effective alternative to traditional investment forms like Initial Public Offerings (IPOs), which usually dominate the stock market.
It should be noted that the ongoing security risks, as highlighted by Ambassador Persson, underscore the complex environment that foreign companies must navigate when investing in Pakistan.
Particularly, Chinese engineers and workers, associated with the China-Pakistan Economic Corridor (CPEC), have been frequent targets of Baloch armed groups. Baloch political and social circles often view CPEC and other similar projects as exploitative.
Notably, in 2018, the Baloch Liberation Army’s Majeed Brigade escalated its activities against Chinese interests with suicide attacks on a bus carrying Chinese engineers in Dalbandin, followed by an assault on the Chinese consulate in Karachi.
The group has continued its self-sacrificial attacks, including a recent attack last month on the Port Authority Complex in Gwadar and another last year targeting a convoy of Chinese engineers in Gwadar, executed by two ‘fidayeen’ from the BLA’s Majeed Brigade.
The Baloch Liberation Army has repeatedly warned foreign investors from investing in Balochistan and becoming a part of what of what it calls the ‘colonial and exploitative policies of Pakistan.’