It is heartening to note that Nestle has announced that it will invest an additional USD60million in Pakistan and will also undertake a robust expansion of its operations in the country.
This development came as Finance Minister Muhammad Aurangzeb met Remy Ejel, the executive vice president and chief executive officer for Asia, Oceania, and Africa at Nestle, on the sidelines of the World Economic Forum (WEF) in Davos, according to a statement issued by the finance ministry.
It is important to note that FDI in Pakistan has declined 43% in the first half of the ongoing financial year 2025-26, with telecom sector leading outflows. Pakistan’s economy is in a bad shape owing to a variety of reasons.
Therefore, the fact that the country needs more and more foreign direct investment cannot be over-emphasized. FDI is the third principal source of foreign exchange for the country after workers’ remittances and exports. And, the country will always need foreign exchange to foot import bills and make external debt repayments.
In the case of developing economies such as Pakistan’s, FDI inflows have become a major source of economic development and integration of these economies with the world economy. Hence the need for taking all the required steps aimed at boosting FDI inflows without any further loss of time.
Tehsin Javed (Lahore)
Copyright Business Recorder, 2026
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