ISLAMABAD: Nearly three-quarters of foreign companies operating in Pakistan now recommend the South Asian country as a viable destination for foreign direct investment (FDI), signalling a recovery in investor sentiment after the 2022–23 foreign exchange crisis, according to a survey.
The 2025 Perception and Investment Survey by the Overseas Investors Chamber of Commerce and Industry (OICCI) found that 73 percent of overseas investors would recommend Pakistan for FDI, up from 61 percent in 2023.
The survey covered more than 200 multinational companies operating in the country.
Improving investor sentiment
OICCI said the improvement reflects greater macroeconomic stability, including a more stable exchange rate following sharp rupee depreciation in recent years, as well as credit rating upgrades by international agencies.
“The 2025 Perception and Investment Survey provides a cautiously optimistic snapshot of investor sentiment in Pakistan,” the report said, adding that improvements in macroeconomic indicators and recent policy reforms have begun to rebuild confidence among foreign investors.
The survey said foreign direct investment continues to be concentrated in modest commitments, even though the proportion of firms planning no future investment has declined.
Rising business costs were highlighted as a key concern. Nearly all respondents reported increases in energy prices, wages and raw material costs, the survey said.
The survey noted that sentiment among multinationals already operating in Pakistan has improved.
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,” Hussain added.
