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Nearly three-fourths of Pakistan’s leading foreign investors now see the country as a viable destination for future investment, signalling a strong rebound in sentiment amid improving economic fundamentals, according to the Overseas Investors Chamber of Commerce and Industry’s (OICCI) Perception and Investment Survey 2025. The survey revealed that 73% of OICCI members, representing over 200 multinational firms, recommend Pakistan for foreign direct investment (FDI), up from 61% in 2023. The chamber credited this improvement to a sharp drop in inflation, from 37% in mid-2023 to 4% by July 2025, along with a stable rupee and improved global credit ratings. OICCI President Yousaf Hussain said the positive shift in investor sentiment shows that economic reforms are finally delivering results. He highlighted the role of the Special Investment Facilitation Council (SIFC), formed in 2023, in coordinating policies and accelerating investment approvals. “Sustaining this momentum will require deeper private sector participation, tax reforms, and regulatory efficiency,” he noted. Investor perception of business risk has also improved, from high to medium, with 58% of respondents expecting growth in their respective sectors over the next two to three years, up from 40% in 2023. The OICCI report further stated that 35% of parent companies now prioritise Pakistan for new investments, compared to 24% two years ago. However, investors continue to face challenges, including high energy costs, slow tax refunds, weak federal-provincial coordination, and prolonged commercial dispute resolution, with many cases taking over five years. OICCI CEO and Secretary General Abdul Aleem emphasised that while investor optimism has risen, sustaining it demands policy consistency and institutional reforms. “High business costs, complex taxation, and enforcement delays still hinder progress,” he said, urging tax harmonisation and simplified regulations to attract long-term FDI inflows. Foreign investors identified IT and digital services, renewable energy, agriculture, pharmaceuticals, and export-oriented manufacturing as the most promising sectors for future FDI. They also stressed the need to improve Pakistan’s international image, as 82% said negative media coverage continues to hurt investment decisions. Founded in 1860, OICCI remains Pakistan’s oldest and most influential business chamber, serving as a bridge between global investors and policymakers. The 2025 survey reflects growing optimism, showing Pakistan slowly regaining investor confidence through reform-driven resilience.
