Foreign investors operating in Pakistan are showing renewed confidence in the country, with a growing number now recommending it as a place to invest.
According to the 2025 Perception and Investment Survey released on Friday, 73 percent of overseas investors currently working in Pakistan say they would recommend the country as a viable destination for foreign direct investment. This marks a notable rise from 61 percent in 2023 and reflects a gradual recovery in sentiment after the foreign exchange crisis of 2022 to 23.
The survey was conducted by the Overseas Investors Chamber of Commerce and Industry, which represents more than 200 multinational companies operating in Pakistan. It found that improving economic indicators and recent policy steps have helped restore some level of trust among investors, though caution remains.
A key factor behind the improved outlook is relative stability in the exchange rate after a period of sharp rupee depreciation. Credit rating upgrades by international agencies have also supported confidence, according to the survey.
Despite this progress, investors flagged several challenges that continue to affect long term decisions. Regulatory uncertainty remains a major concern, with respondents pointing to delays in tax refunds, uneven enforcement of rules and weak coordination between federal and provincial authorities.
While fewer companies now say they have no plans to invest further, most are still opting for limited or careful expansion rather than large commitments. Rising business costs are adding to this caution, as nearly all respondents reported higher energy prices, wages and raw material costs.
Political uncertainty, sudden policy changes and the absence of a clear fiscal direction were also listed among key worries.
The survey noted that although sentiment among investors already present in Pakistan has improved, the country’s image abroad has seen only slight improvement. Negative international coverage continues to shape global views, underlining the need for stronger and more consistent communication with international markets.
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