Pakistan’s foreign direct investment (FDI) inflows for FY25 dropped to US$1.84 billion from US$1.90 billion in the previous year, signalling a pause in investor confidence. Industrial exit trends in sectors like pharmaceuticals, FMCGs and telecom underscore structural concerns. Experts argue that unless Pakistan accelerates reforms — including transparent regulation, intellectual property protection and business-friendly labour laws — sustainable investment will remain elusive. The slippage in FDI comes amid modest macro-economic improvements, but capital seekers are looking for clarity on policy continuity, currency risk and governance. For Pakistan’s economic revival, this moment highlights that headline-macro indicators (inflation, GDP growth) are necessary but not sufficient—quality of investment, domestic institutional strength and ease of doing business will be critical to unlocking long-term growth.
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