Foreign investors taking notice of Pakistan’s economic turnaround, says Schehzad

Foreign investors are showing renewed optimism in Pakistan’s economic outlook as key structural reforms and cost-cutting measures begin to take hold, said Khurram Schehzad, Advisor to the Finance Minister, citing the findings of the Overseas Investors Chamber of Commerce and Industry (OICCI) Perception and Investment Survey 2025.

Taking to social media platform X on Wednesday, the advisor said, “encouraging signs” have emerged from the OICCI survey, which shows a significant rise in foreign investor confidence in Pakistan.

According to the survey, 73% of existing foreign investors now recommend Pakistan as a viable investment destination, up from 61% two years ago.

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“This growing confidence of existing foreign investors in Pakistan reflects a clear direction of reform and revival, with currency stability, low inflation, well-maintained fiscals, and contained monetary and external, with global validations, following key improvements to make a further difference,” said Schehzad.

He maintained that the government remains committed to implementing structural reforms.

He noted that several key initiatives have contributed to the positive momentum, including reduced energy costs, lower interest rates, tax rationalisation and regulatory improvement.

“Energy cost reduced - from Rs38 to Rs 23 per unit- for industry and agriculture.” Meanwhile, interest rates have been halved, providing a “better and more affordable” access to finance, he said.

Moreover, the government is reshaping the tax regime to support the formal sector, while focusing on compliance and broadening the tax base. Approval and licensing timelines have been shortened from years to weeks, creating a more predictable business environment, said Schehzad.

“While efforts are underway to do more, lowering costs and improving ease of doing business with structural reforms underway, are making space for sustainable growth, investment, and jobs,” he concluded.