Foreign Investors Renew Confidence in Pakistan’s Economy

Foreign investors are once again showing trust in Pakistan’s economy. This renewed optimism follows a wave of reforms and cost cutting measures by the government.
Khurram Schehzad, Advisor to the Finance Minister, shared the findings of the OICCI Perception and Investment Survey 2025. He highlighted that the survey shows “encouraging signs” of investor confidence returning to Pakistan.
According to the OICCI report, 73% of existing foreign investors now recommend Pakistan as a viable destination. This is a clear rise from 61% two years ago, reflecting stronger faith in the country’s economic direction.

Reforms drive optimism

Schehzad noted that Pakistan’s improving fundamentals have helped restore confidence. Stable currency, lower inflation, and better fiscal management are driving this positive change. He added that the government remains focused on long term reforms to ensure continued progress.
Several key initiatives have supported this turnaround. Energy costs have dropped significantly, from Rs38 to Rs23 per unit for industry and agriculture. As a result, businesses now enjoy lower operating expenses.
Interest rates have also been reduced by half, making borrowing more affordable. This step has improved access to finance for both local and foreign investors.
In addition, Pakistan is modernizing its tax regime to promote fairness and support the formal economy. The government is also working to widen the tax base and improve compliance. Approval and licensing timelines have been shortened from years to just weeks making business processes faster and more predictable.
Schehzad emphasized that while more work remains, these ongoing reforms are creating space for sustainable growth, higher investment, and job creation.
Outlook
Foreign investors’ confidence reflects the growing global recognition of Pakistan’s reform efforts. With continued improvements in governance and policy execution, experts believe Pakistan can strengthen its position as a regional investment hub.
The message from the OICCI survey is clear: Pakistan’s economic revival is gaining momentum, and international investors are taking notice.