ISLAMABAD: A growing majority of overseas companies operating in Pakistan now view the country as a viable destination for direct investment, according to a new survey of multinational businesses.
The study, conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI), found that 73% of foreign investors recommend Pakistan for investment, reflecting a notable improvement in sentiment compared with recent years.
The findings are based on responses from more than 200 multinational firms across multiple sectors. In the previous survey conducted in 2023, 61% of respondents expressed confidence in Pakistan as an investment destination.
OICCI said the improvement in investor outlook is linked to relative macroeconomic stabilization, including improved foreign exchange management and gradual policy adjustments following economic pressures during 2022–23.
Survey participants pointed to greater exchange-rate predictability and improved engagement with economic policymakers as factors supporting a more stable business environment. Some investors also cited recent credit rating developments and fiscal discipline as contributing signals.
However, the survey noted that concerns remain. Regulatory uncertainty, higher energy prices, rising labor costs and delays in tax-related processes continue to influence investment decisions. Coordination challenges between federal and provincial authorities were also highlighted.
Despite these constraints, the proportion of companies planning to scale back or suspend investment has declined, indicating cautious but sustained engagement by foreign firms.
OICCI stated that continued reforms, policy consistency and clearer international communication could further strengthen Pakistan’s investment profile and support higher foreign direct investment inflows in the coming years.
