The country will get more market access in the US and President Musharraf is not expected to face any resistance from the international community against retaining two offices following the re-election of George W Bush as US President for the second term. Politically, re-election of President Bush is beneficial for Pakistan as, given the strong relationship between President Musharraf and President Bush, Musharraf is unlikely to face any international pressure over his expected decision to retain the post of Army Chief as well, said Muhammad Faisal Potrik, Director, Research and International Brokering at First Capital Equities.
Also, Pakistan's existing co-operation with America would continue at full pace and the question of resumption of 'full democracy' is likely to take a back seat. Economically, remaining portion of the promised Aid and other monetary flows are likely to happen smoothly, including a possible sale of F-16 aircraft to Pakistan, which might have been delayed with a new President in the US.
Humaira Zaheer, head of research at Capital One Equities, said that the success of President Bush could be termed as a 'good omen' for Pakistan as the government would be much cherished on the continuation of policies of mutual interests of both the nations.
"We hope that on the Economic and political grounds, joint assistance would continue in line with the current US policies for Pakistan as Musharraf-Bush wavelength meets quite resourcefully on the major issues of national concern," she said.
The index quadrupled since September 11, 2001, after President Pervez Musharraf supported the US-led war on terrorism.
Bush's victory "means US strategy towards Pakistan remains the same and Pakistan will continue to benefit from the US aid program. Pakistan will stay aligned with the US as a frontline state in war on terror," said Murad Ansari, head of research at KASB Equities. Investors will look positively at the next four years of Bush and his relationship with Musharraf, he added.
Azhar Javed, research analyst from WE, said that President Bush won the election on the back of war on terrorism and both US and Pakistan governments have resolved to root out terrorism. "In this context we expect that we may be given greater access to the American markets, which is being discussed in several bilateral forums, although it would be difficult for President Bush since he is popular in rural constituencies, and is expected to placate them by prolonging the removal of farm subsidies."
However, the same constituency has endorsed his actions in Iraq and Afghanistan, and Pakistan is expected to play important role in achieving those ends. In this regard, Pakistan can expect some relief but cannot expect anything substantial unless certain bilateral issues are resolved.
One issue that is yet to be resolved, and is hindering the flow of investments, relates to intellectual property rights. Officials from State Department were here in mid-September to discuss the issue and had stressed the establishment and enforcement of strong intellectual property rights law before any bilateral investment treaty may be signed. "Before this issue is resolved, keeping military aid aside, we do not see any substantial investments from American companies in Pakistan."
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