Investor confidence in Pakistan is improving, with 73 percent of Foreign Investors recommending the country for future foreign direct investment (FDI), according to the Overseas Investors Chamber of Commerce and Industry (OICCI) Perception and Investment Survey 2025.
The survey results reflect a major improvement from 2023 when only 61 percent of investors viewed Pakistan as a preferred destination. The OICCI report credited this shift to economic reforms, lower inflation, and a more stable exchange rate.
Representing more than 200 leading companies, the OICCI said that interest from parent companies abroad has also increased. About 35 percent of respondents stated that their global headquarters now consider Pakistan a priority market, compared to just 24 percent two years ago.
OICCI President Yousaf Hussain said the positive outlook shows that recent reforms and policy coordination are paying off. He praised initiatives like the Special Investment Facilitation Council (SIFC), which has helped create a stronger framework for investment facilitation and government alignment.
Despite this progress, challenges remain. The report noted that 57 percent of participants pointed to weak federal–provincial coordination as a major concern. Rising operational costs also continue to burden businesses. Around 96 percent of respondents reported higher energy expenses, while 95 percent cited increased wages. Over 80 percent said tax refund delays continue to affect cash flow.
Still, Foreign Investors are optimistic about future opportunities in sectors such as information technology, renewable energy, pharmaceuticals, agriculture, and export manufacturing.
OICCI CEO M. Abdul Aleem said that while investor sentiment has improved, faster execution is needed. “Reducing business costs, ensuring tax clarity, and improving contract enforcement are vital for attracting sustained investment,” he said.
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The OICCI report concluded that Pakistan’s investment climate is showing steady improvement. Continued reforms, policy consistency, and better governance could help convert this growing investor confidence into higher FDI inflows.
