Foreign Investors Show Renewed Confidence in Pakistan’s Economic Climate

Karachi: A recent survey conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI) suggests a positive shift in foreign investor sentiment towards Pakistan. The OICCI’s Perception and Investment Survey 2025 indicates that 73 percent of its members now recommend Pakistan as a destination for foreign direct investment, marking a rise from 61 percent in 2023.

The survey attributes this change to improved macroeconomic conditions, including reduced inflation and a stable currency. Pakistan’s international credit ratings have also seen an upgrade. With 35 percent of respondents’ parent companies now prioritizing Pakistan for new investments, the country’s regional standing appears to have strengthened compared to peers like Bangladesh and Vietnam.

OICCI President Yousaf Hussain noted that the improvement in investor sentiment is due to economic stability and policy coordination. He emphasized the importance of continued reforms in taxation and regulatory efficiency to maintain this momentum.

Despite the favorable outlook, challenges remain. Federal-provincial coordination was criticized by 57 percent of the respondents, while high energy and wage costs, along with delayed tax refunds, were major concerns. Commercial disputes were reported to take over five years to resolve, underscoring the need for judicial reform.

The survey also highlighted the importance of enhancing Pakistan’s digital infrastructure and regulatory landscape to attract long-term foreign investment. Strengthening the country’s global image is seen as crucial for sustaining investor interest.

In conclusion, OICCI CEO M. Abdul Aleem stated that while investor confidence has improved, addressing high business costs and complex regulations is essential for translating optimism into concrete FDI inflows. The survey underscores the need for consistent policy execution and long-term continuity to capitalize on the positive investor sentiment.