Former President of the SAARC Chamber of Commerce and Industry Iftikhar Ali Malik emphasized on Sunday that political stability is a fundamental factor for achieving sustainable economic growth, as it creates an environment of predictability, security, and trust.
In a press statement issued here, he highlighted that a stable political environment promotes long-term planning and attracts both domestic and foreign investments. He noted that when governments operate smoothly, enforce the rule of law, and implement consistent policies, the business community gains confidence, driving investment, expansion, and overall economic development.
Iftikhar Ali Malik further stated that political stability is not merely a facilitator, but a prerequisite for drawing foreign investors and boosting the confidence of the business community. In its absence, economies face uncertainty, stagnation, and missed opportunities for growth.
“Foreign investors are particularly sensitive to political instability, as it increases the risks of sudden policy changes or disruptions due to social unrest.
A politically stable nation assures investors of the safety of their investments and the likelihood of a predictable return,” he said, adding that economies with stable governance structures, such as those in many advanced nations, tend to attract higher levels of foreign direct investment (FDI) than regions plagued by political turmoil.
He pointed out that political stability fosters an environment conducive to entrepreneurship and innovation.
Confident businesses are more willing to take risks, invest in new technologies, and hire more employees, all of which drive productivity and contribute to a growing economy.
“These elements are crucial for restoring and maintaining confidence, especially during times of global economic uncertainty. Stable governance enables governments to focus on long-term economic planning, infrastructure development, and social programs that improve the quality of life for people,” he added.
