Foreign investors show renewed confidence as Pakistan’s investment climate improves

LAHORE: Foreign investors are increasingly viewing Pakistan as a viable and attractive market, according to the latest OICCI Perception and Investment Survey 2025, which shows investor confidence rising significantly over the past two years.

The survey, conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI), indicates that 73% of foreign investors now consider Pakistan a viable investment destination, compared to 61% in the previous survey.

OICCI represents over 200 multinational companies operating in Pakistan, many of whom have continued to reinvest during periods of economic uncertainty.

Between FY2015 and FY2024, OICCI members invested $22.9 billion in capital expenditures, surpassing Pakistan’s total foreign direct investment inflows of $22.1 billion during the same period.

Their total assets now stand at $121 billion, reflecting strong and sustained commitment to the local market.

“Pakistan’s macroeconomic stability has improved dramatically,” the OICCI report notes, highlighting sharp declines in inflation, from 37% to 4%, alongside a stabilized rupee and upgraded international credit ratings.

These developments, according to the survey, have helped shift investor sentiment from cautious to optimistic.

The number of global headquarters prioritizing Pakistan for future investments has also increased. In 2023, only 24% of parent companies viewed Pakistan as a priority market; the figure has now risen to 35%, reflecting improving perceptions of long-term growth potential.

Speaking to Pakistan TV Digital, OICCI CEO Aleem Khan emphasized the chamber’s economic significance, noting that member companies “represent the largest group of taxpayers in Pakistan, contributing around one-third of total tax revenue.”

He attributed the improving outlook to “successful engagement with international financial institutions and necessary but difficult economic reforms.”

However, some challenges remain. Khan acknowledged the persistent gap between policymaking and implementation as a barrier to faster progress, though he expressed confidence in the government’s recent efforts to work more closely with the business community.

The broader regional context also supports Pakistan’s improving investment landscape. Countries from ASEAN are exploring opportunities in Pakistan’s tourism, agriculture, food, and manufacturing sectors, while mineral development is emerging as a major strategic priority.

Pakistan recently signed a $500 million memorandum of understanding with US Strategic Metals to develop its critical minerals sector, estimated to contain $6 trillion to $8 trillion in potential reserves.

In the technology sector, Pakistan’s innovators are securing international partnerships. NETSOL Technologies recently signed a multi-million-dollar contract with a major Australian auto finance firm, while Airlink Communications partnered with Saudi SN Technologies on AI, IoT, and smart city initiatives.

The OICCI survey concludes that while sentiment is clearly improving, converting confidence into sustained economic growth will require policy consistency and continued stakeholder engagement.

Pakistan’s challenge now is not convincing investors to look its way, but ensuring that their rising confidence translates into long-term investment on the ground.