Key Points
- Investor confidence strengthens due to facilitation by Special Investment Facilitation Council
- Profit remittances on foreign investment up 27% to $1.7 billion in first seven months of FY 2025-26
- Energy and financial sectors top returns with $400.19 million and $371.33 million, respectively
- Indicates stable economic momentum and improved investment environment
ISLAMABAD: Pakistan has witnessed a notable increase in investor confidence, bolstered by the government’s facilitation through the Special Investment Facilitation Council (SIFC), according to officials and data from the State Bank of Pakistan (SBP).
The surge in foreign investment returns reflects a combination of macroeconomic stability, targeted policy reforms, and effective investor facilitation.
Analysts note that the increase signals growing trust from international investors in Pakistan’s financial and energy sectors, as well as a recognition of the country’s efforts to create a transparent and business-friendly environment.
Profit remittances surge
Data from the SBP shows that profit remittances on foreign investment rose to $1.7 billion in the first seven months of fiscal year 2025-26, marking a 27 per cent increase compared to the same period last year.
The energy and financial sectors led these returns with $400.19 million and $371.33 million, respectively, highlighting the attractiveness of these key sectors to global investors.
Role of the Special Investment Facilitation Council
The Special Investment Facilitation Council (SIFC) has played a central role in providing streamlined support and facilitation to foreign investors.
By addressing regulatory bottlenecks and providing a single-window mechanism for approvals, the SIFC has helped enhance Pakistan’s investment climate and attract global capital.
Economic reforms and investment climate
Pakistan has implemented several reforms to strengthen investor confidence, including measures regarding the ‘ease-of-doing-business’, tax incentives for foreign investors, and transparent regulatory processes.
These measures, alongside macroeconomic stability, have contributed to the growing international confidence in the country’s economic momentum.
Sectoral performance
The energy and financial sectors have emerged as leading beneficiaries, reflecting strong investor interest and attractive returns.
Analysts say that consistent performance in these strategic sectors signals broader confidence in Pakistan’s industrial and financial framework.
Looking Ahead
Officials expect continued growth in foreign investment returns, underpinned by SIFC’s facilitation, economic reforms, and improved regulatory mechanisms.
Sustained investor confidence is likely to support industrial expansion, strengthen the external account, and enhance Pakistan’s long-term economic stability.
