ISLAMABAD: The latest survey by the Overseas Investors Chamber of Commerce and Industry (OICCI) revealed that 73 per cent of its members now consider Pakistan a viable destination for foreign direct investment (FDI), a significant increase from 61 per cent in 2023.
OICCI, the largest representative body of more than 200 leading foreign investors operating in Pakistan, released its biennial Perception and Investment Survey 2025, reflecting a cautiously optimistic outlook on the country’s business and investment climate.
The improved sentiment is attributed to macroeconomic stability, reduced inflation — which fell from 37 percent in mid-2023 to 4 percent by July 2025 — and a relatively stable rupee, alongside upgraded international credit ratings.
According to the survey, Pakistan’s regional standing on investment viability has improved compared to 2023, outpacing several peers, including Bangladesh, Vietnam, and the Philippines.
Parent company interest has also strengthened, as 35 percent of respondents said their headquarters now view Pakistan as a priority destination for new FDI, compared to 24 percent two years ago.
OICCI President Yousaf Hussain said the upward shift in investor sentiment indicates that economic stability and policy coordination are beginning to yield results. “Initiatives like the SIFC have provided a structured mechanism for investment facilitation and inter-governmental alignment. Going forward, deeper private sector inclusion and continued reforms in taxation and regulatory efficiency will be key to sustaining this momentum,” he added.
The survey further indicates that investor perception of business risk has shifted from a predominantly high-risk to a medium-risk outlook, reflecting improved macroeconomic management and relative stability.
Members’ views on Pakistan’s economic outlook have also improved markedly since 2023.
About 58 percent of respondents now expect sectoral growth over the next two to three years, up from 40 percent in the previous survey, citing stronger inflation control, exchange rate management, and capital market performance.
OICCI members recommended enhancing Pakistan’s digital and regulatory landscape, investing in human capital, and formulating a comprehensive, sector-focused investment policy.
They also emphasized diversifying industrial growth beyond the IT sector to broaden the country’s economic base.
Strengthening Pakistan’s international image was seen as crucial for attracting sustainable long-term investment.
Foreign investors identified IT and digital services, renewable energy, agriculture, pharmaceuticals, and export-oriented manufacturing as the most promising sectors for future FDI.
OICCI CEO and Secretary General Abdul Aleem added that while investor confidence has improved, challenges remain. “High business costs, complex taxation, and delays in contract enforcement continue to hinder investment. OICCI members recommend harmonizing tax policies, simplifying regulations, and enhancing institutional capacity to translate optimism into tangible FDI inflows,” he said.
