THOUGH the government goes on boasting of its successes in reviving the economy, the ground realities continue to be different, as was shown both by the State Bank of Pakistans latest report on foreign investment, and by the Stock Exchange 's falling so much. The Stock Exchanges own KSE100 share index fell 104 points, or one percent, a fall ascribed to the destabilising dispute between the President and the Supreme Court. However, apart from the fact that a country like Pakistan, which lurches from crisis to crisis, with the judicial crisis just being the latest, cannot afford the loss that represents in FDI, which was always important, as has been any source of foreign exchange; but which has become more important with the multiple global crises of recent times. Foreign portfolio investment has been an important source of funding for the stock exchange, and its relative drying up led to the fall in stock values. Among the factors mentioned for this decline have been political uncertainty, continued energy crisis and a decline in re-invested earnings by investors in key sectors. The final factor may have direct impact upon investor attitudes, and thus upon portfolio investment, but it depends on the previous two, which are in turn directly related to the governments policies. The government must revisit its policy of total acquiescence in the USAs war on terror, to determine whether it enhances or decreases political stability. The government must also determine whether being on the American side in the war has helped alleviate the energy crises besetting the economy. The USA has made a lot of promises, most notably when Secretary of State Hilary Clinton was visiting Pakistan, but the lack of action since then has been all too noticeable. If the government wants to attract foreign investment, it must ensure more support for its policies by aligning them to popular wishes, rather than trying to please the USA through them. Also, it must work on the specific factors which keep away foreign investors. Merely saying that Pakistan is investor-friendly will not make it so.