ISLAMABAD: Pakistan’s former Minister for Investment Muhammad Azfar Ahsan on Thursday emphasized the urgent need for Pakistan to prioritize optimizing its existing investments.
Speaking at a special talk organized by the China Pakistan Study Centre (CPSC) at the Institute of Strategic Studies Islamabad (ISSI), he advocated for a strategy that focuses 80% on nurturing current investors rather than solely attracting new ones. The topic of the talk was “Pakistan’s Investment Landscape: Challenges, Opportunities, and Way Forward.”
Azfar highlighted that sustainable economic growth and stability can only be achieved through resource consolidation, capacity-building, and creating an enabling environment for investors. “If we focus 80% on existing investments, foreign investment will follow,” he stated.
He compared Pakistan’s investment performance to that of its regional neighbors, noting that the country has attracted USD 49 billion in foreign investment over the past 25 years, averaging USD 2 billion annually. In contrast, smaller African nations draw in USD 3 billion yearly, Bangladesh secures USD 3.5 billion, and India attracts USD 50 billion. “This disparity highlights the need for a coherent national strategy and reforms to enhance Pakistan’s competitiveness,” he remarked.
Azfar expressed concern over Pakistan’s rapidly growing population, projected to reach 400 million by 2047. He stated, “As the fifth most populous country today, with 250 million people, the absence of a strategy addressing education, health, and population growth could jeopardize the country’s future.”
He stressed the importance of policy continuity and long-term planning, citing India’s IT sector, which generates USD 200 billion annually. Azfar emphasized that a strong education system, consistent policies, and strategic government initiatives are essential for replicating such success in Pakistan.
To tackle these challenges, he proposed establishing a ‘Charter of Business,’ a comprehensive economic strategy approved by Parliament and the National Security Council to ensure continuity across different government tenures. “We need policies that are insulated from changing governments,” he asserted.
Drawing comparisons with successful nations, Azfar praised the investment-friendly environments of Saudi Arabia and Uzbekistan, urging Pakistan to adopt similar models. He also encouraged closer collaboration with China, particularly in technology exchange, noting that Pakistan’s youthful demographic could complement China’s ageing population.
He stressed the need for capacity-building in both the public and private sectors and called for reforms within ministries to foster a more favorable climate for local and foreign investors. “Improving the environment for local investment will naturally attract foreign investment,” he stated.
Azfar criticized the lack of long-term planning, frequent leadership changes, and political instability, which have impeded the country’s progress. He called for a national-level dialogue to bridge political divides and foster unity around a shared vision. Additionally, he highlighted the potential of engaging Pakistan’s diaspora, which, if nurtured properly, could significantly boost the economy.
He pointed to the Roshan Digital Account as a promising initiative that could thrive if executed effectively. “With foreign reserves standing at USD 8.8 billion, tapping into the diaspora’s potential could transform our investment landscape,” he added.
On the issue of political stability, he underscored the importance of national dialogue and stakeholder engagement, warning that political polarization poses the biggest challenge to the country today. “Muhammad Bin Salman has worked with six different prime ministers of Pakistan—this political instability must end,” he remarked.
Azfar lamented the absence of a national strategy in key sectors such as health, education, media, tourism, food security, technology, and finance. “Pakistan is facing an identity crisis. Are we a democracy, a kingdom, a dictatorship, or a presidential government? There is no unified vision,” he observed.
He urged the country to learn from examples like Vietnam, Middle Eastern nations, and parts of Africa, where policy continuity has been key to success. “While the Special Investment Facilitation Council (SIFC) is a good concept, it is not sustainable. The Board of Investment (BOI) should not be overlooked,” he cautioned, advocating for a 25-year national strategy to guide Pakistan’s progress.
In his concluding remarks, Azfar reiterated the importance of nation-building and urged the media to project positivity, focusing on stories related to education, sports, and technology. “Political polarization is our biggest challenge. If we don’t stop the negativity, it will only serve our enemies’ aim to halt Pakistan’s progress,” he warned.
