Around 73% of over 200 foreign investors see Pakistan as a viable destination for foreign direct investment (FDI), according to the latest Perception and Investment Survey 2025 by the Overseas Investors Chamber of Commerce and Industry (OICCI). This marks an increase from 61% in 2023.
The survey reflects Pakistan’s improving business climate, citing enhanced macroeconomic stability, a drop in inflation from 37% in mid-2023 to 4% by July 2025, and a more stable rupee. Furthermore, the country’s upgraded international credit ratings have contributed to the more favorable outlook.
OICCI President Yousaf Hussain noted that the upward shift in investor sentiment demonstrates the effectiveness of economic stability measures and policy coordination. He attributed progress to initiatives like the Special Investment Facilitation Council (SIFC), which has provided a more structured mechanism for investment facilitation.
The survey also revealed that 35% of respondents indicated their parent companies now prioritize Pakistan as a destination for new FDI, up from 24% last year. Pakistan is now seen as a stronger regional investment destination, surpassing countries like Bangladesh, Vietnam, and the Philippines.
While investor perceptions of business risks have shifted from high to medium, the survey identified ongoing structural challenges, including poor federal-provincial coordination, high energy costs, and delays in tax refunds. These concerns continue to constrain Pakistan’s investment potential.
The survey also called for reforms to improve Pakistan’s digital infrastructure, regulatory environment, and industrial capacity to diversify economic growth. Enhancing Pakistan’s global image was cited as essential to attracting long-term investment.
In terms of global perception, 82% of respondents pointed to negative international coverage as a barrier to investment, suggesting the need for a proactive communications strategy to improve Pakistan’s image on the global stage.
The findings indicate that while there has been noticeable improvement in Pakistan’s economic outlook, efforts to address structural bottlenecks, strengthen coordination between federal and provincial governments, and ensure policy consistency are crucial for sustaining growth in foreign investment.
