ISLAMABAD: Seventy-three percent of overseas investors operating in Pakistan now recommend the country as a viable destination for direct investment, up from 61% in 2023, according to a survey of more than 200 multinational companies released on Friday, signaling a measurable improvement in investor sentiment following Pakistan’s 2022–23 foreign exchange crisis.

The 2025 Perception and Investment Survey, conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI), which represents multinational firms in the country, found that improving macroeconomic indicators and recent policy reforms have begun to restore confidence, though investors remain cautious about regulatory unpredictability and rising business costs.

“The 2025 Perception and Investment Survey ... provides a cautiously optimistic snapshot of investor sentiment in

Pakistan,” the report said, noting that “improvements in macroeconomic indicators and recent policy reform initiatives have begun to rebuild confidence among foreign investors.”

The survey pointed to relative exchange-rate stability after a period of steep rupee depreciation, alongside credit rating upgrades by international agencies.

“73% of OICCI members now recommend Pakistan as a viable FDI destination, compared to 61 percent two years earlier,” it added.

Despite the improved macro picture, the survey warned that structural and regulatory challenges continue to weigh on investment decisions. 

“The broader regulatory landscape remains complex and unpredictable,” it said, highlighting delays in tax refunds, inconsistent enforcement and weak coordination between federal and provincial authorities.

Foreign direct investment, while showing some positive movement, “remains concentrated in cautious brackets,” with most investors opting for modest commitments despite a decline in the proportion of firms planning no future investment.

Rising costs were a major concern, with nearly all respondents reporting increases in energy prices, wages and raw material costs. Political instability, sudden regulatory changes and an unclear fiscal roadmap were listed among the top investor apprehensions.

The survey warned that despite the positive outlook among multinationals operating in Pakistan, international perception of the country has improved only marginally, adding that “negative global coverage continues to influence investment decisions significantly,” and underscoring the need for a more proactive international communication strategy.