Pakistan is gaining strong investor confidence, with 73% of foreign investors now viewing the country as a viable destination for Foreign Direct Investment (FDI), a notable increase from 61% in 2023, according to the Overseas Investors Chamber of Commerce and Industry (OICCI) Perception and Investment Survey 2025.
The report attributes this positive shift to improved macroeconomic stability, a stronger rupee, and reduced inflation, which have helped restore business confidence. Pakistan has also shown better regional competitiveness, outpacing peers such as Bangladesh and Vietnam in key investment indicators.
Foreign investors highlighted that parent companies are showing renewed interest in exploring opportunities within Pakistan’s market, particularly in sectors like manufacturing, energy, and digital services. The business outlook, while still categorized as medium-risk, is improving steadily as policy measures take effect.
However, the survey also pointed out ongoing challenges. High energy costs, delayed tax refunds, and limited coordination between federal and provincial authorities continue to hinder ease of doing business. These issues, if addressed promptly, could significantly accelerate FDI inflows.
To sustain this upward trend, the OICCI recommends strategic reforms in taxation, regulation, and digital infrastructure development. Strengthening these areas could help Pakistan attract long-term investors and unlock greater economic growth potential.
Overall, the 2025 OICCI report paints a cautiously optimistic picture, signaling that Pakistan is on the right track toward becoming a more attractive and stable investment hub in the region.
