Foreign investors renew confidence in Pakistan

November 05, 2025 (MLN): Pakistan’s position as an emerging investment destination has strengthened as 73% of existing foreign investors now recommend the country as a viable destination for investment, up from 61% two years ago, according to the OICCI Perception and Investment Survey 2025.

The findings, shared by Khurram Schehzad, Advisor to the Finance Minister, in a post on X (formerly Twitter), reflect growing investor confidence amid improving macroeconomic indicators and ongoing structural reforms.

Schehzad said the growing optimism among foreign investors underscores Pakistan’s “clear direction of reform and revival,” supported by currency stability, lower inflation, and improved fiscal and external balances, validated by global financial institutions.

He highlighted several policy measures contributing to this positive shift, including a reduction in energy tariffs for industry and agriculture from Rs38 to Rs23 per unit for a three-year relief period, and interest rates cut by half, making financing more affordable for businesses.

In addition, the tax structure is being rationalized, with relief targeted toward formal sectors and a stronger compliance focus, while regulatory processes have been streamlined, shrinking approval timelines “from years to weeks and days,” he noted.

“The message is clear,” Schehzad wrote, adding that ongoing efforts to lower business costs and improve ease of doing business through structural reforms are paving the way for sustainable growth, investment, and job creation in the country.

The OICCI Perception and Investment Survey, conducted biennially, captures the sentiment of leading foreign investors operating in Pakistan across various sectors, serving as an important benchmark for policymaking and economic confidence.

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