ISLAMABAD: Nearly three-quarters of overseas investors operating in Pakistan now recommend the country as a viable destination for direct investment, up from 61% in 2023, a business survey released on Friday showed.
The findings signal a gradual improvement in investor confidence after Pakistan’s 2022–23 foreign exchange crisis.
The 2025 Perception and Investment Survey, conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI), surveyed more than 200 multinational companies operating in the country.
The survey cited improving macroeconomic indicators and recent policy reforms as key factors behind the shift in sentiment. It pointed to relative exchange-rate stability after a period of sharp rupee depreciation, as well as recent credit rating upgrades by international agencies.
“Seventy-three percent of OICCI members now recommend Pakistan as a viable foreign direct investment destination, compared with 61% two years earlier,” the report said.
Despite the improvement, investors remain cautious. The survey warned that regulatory uncertainty and rising business costs continue to weigh on investment decisions.
The report described Pakistan’s regulatory environment as complex and unpredictable. It highlighted delays in tax refunds, inconsistent enforcement, and weak coordination between federal and provincial authorities.
Foreign direct investment has shown some positive movement but remains limited. Most investors are making modest commitments, even as the number of firms planning no future investment has declined.
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Rising costs emerged as a major concern. Nearly all respondents reported higher energy prices, wages, and raw material costs. Political instability, sudden regulatory changes, and an unclear fiscal roadmap also ranked among top investor risks.
The survey said international perceptions of Pakistan have improved only marginally. Negative global coverage continues to influence investment decisions, it added, underscoring the need for a more proactive international communication strategy.
