Investor confidence in Pakistan is improving as 73 percent of foreign investors now recommend the country for future foreign direct investment (FDI), according to the Overseas Investors Chamber of Commerce and Industry (OICCI) Perception and Investment Survey 2025. This figure represents a notable rise from 61 percent recorded in 2023, suggesting growing optimism among international investors amid signs of macroeconomic recovery, declining inflation, and a relatively stable currency environment. The OICCI, which represents over 200 leading foreign investors across multiple sectors, highlighted that renewed confidence is linked to recent policy coordination and efforts to restore economic predictability.
The survey further noted a rise in interest from parent companies abroad, with 35 percent of respondents confirming that their global headquarters are now considering Pakistan a priority investment destination, compared to 24 percent two years ago. OICCI President Yousaf Hussain stated that the improved sentiment reflects progress from ongoing structural reforms and government initiatives such as the Special Investment Facilitation Council (SIFC), which has helped create a more aligned and transparent framework for facilitating investment. He emphasized that stability in policy direction is beginning to translate into tangible investor interest, a trend that could strengthen Pakistan’s FDI inflows if sustained.
At the same time, investor perception of risk has improved, moving from a high-risk to a medium-risk category. However, the OICCI report cautioned that deep-rooted challenges remain, particularly in areas such as federal–provincial coordination, which 57 percent of surveyed investors cited as a major concern. High operating costs continue to weigh on profitability, with 96 percent reporting increased energy expenses, 95 percent noting higher wages, and 91 percent facing higher costs of domestic raw materials. Over 80 percent of respondents also highlighted that tax refunds often take more than two years to process, a factor that constrains liquidity and operational efficiency.
Despite these challenges, the report identified several promising sectors for future investment, including IT and digital services, renewable energy, agriculture, pharmaceuticals, and export-oriented manufacturing. These industries, according to OICCI, present growth opportunities aligned with Pakistan’s evolving market dynamics and resource potential. OICCI CEO and Secretary General M. Abdul Aleem emphasized that while sentiment is improving, policy execution will be crucial. He urged policymakers to address issues such as business costs, contract enforcement, and tax complexity, noting that harmonized and simplified regulations could accelerate the conversion of optimism into measurable FDI growth.
The 2025 OICCI Perception and Investment Survey concludes that while Pakistan’s investment climate shows signs of steady improvement, sustained progress will depend on the continuity of reforms, consistent communication of policy priorities, and practical measures to enhance investor confidence. The findings suggest that with better policy execution, Pakistan could emerge as a stronger destination for regional and global investment in the coming years.
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