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Pakistan political turmoil muddies investment outlook

Stocks crash as uncertainty rises, but China and Gulf cash still flowing

TOM HUSSAIN, Contributing writer | Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan

ISLAMABAD -- Foreign investors and companies are likely to continue investing in Pakistan in pursuit of financial and strategic opportunities, shrugging off worsening political strife and a clash with the U.S. over terrorism, according to analysts.

Announcing an aggressive new strategy for U.S. involvement in Afghanistan on Aug.21, U.S. President Donald Trump issued a thinly-veiled ultimatum to Pakistan to shut down terrorist groups operating from its soil. "We can no longer be silent about Pakistan's safe havens for terrorists, the Taliban and other groups that pose a threat to the region ... But that will have to change and that will change immediately," Trump said.

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