KARACHI: Nearly three-fourths of leading foreign investors in Pakistan view the country as a viable destination for future investment, a new survey showed on Tuesday, marking a cautious uptick in sentiment amid improved macroeconomic stability and a stronger currency.

The findings, published in the Overseas Investors Chamber of Commerce and Industry’s Perception and Investment Survey 2025, come as Islamabad seeks to rebuild investor confidence through the Special Investment Facilitation Council (SIFC), a hybrid civil-military body formed in 2023 to streamline decision-making, attract foreign investment and coordinate economic policy across federal and provincial levels.

The OICCI represents over 200 multinational firms. Its survey showed 73 percent of its members recommend Pakistan for foreign direct investment (FDI), up from 61 percent in 2023. The chamber attributed the shift to stabilizing inflation, which fell from 37 percent over two years ago to 4 percent in July 2025, a relatively stable rupee and improved credit ratings.

“The notable upward shift in investor sentiment demonstrates that economic stability and policy coordination are beginning to deliver results,” said OICCI President Yousaf Hussain.

“Initiatives like the SIFC have provided a structured mechanism for investment facilitation and inter-governmental alignment,” he added. “Going forward, deeper private-sector inclusion and continued reforms in taxation and regulatory efficiency will be key to sustaining this momentum.”

The survey found that foreign investors’ perception of business risk had shifted from high to medium, though many of them cited structural bottlenecks, including weak federal-provincial coordination, delayed tax refunds, high energy costs and lengthy commercial dispute resolution, as key constraints.

According to OICCI, 96 percent of members reported higher energy costs, 95 percent faced increased wage expenses and 91 percent cited rising raw material costs. Over half said commercial disputes take more than five years to resolve.

The chamber noted that Pakistan’s ability to sustain investor confidence will depend on consistent reforms and policy continuity.

It also urged the government to strengthen Pakistan’s global image, with 82 percent of respondents saying negative international coverage continued to affect investment decisions.

Foreign investors identified IT and digital services, renewable energy, agriculture, pharmaceuticals, and export-oriented manufacturing as the most promising sectors for future FDI.

“While investor confidence has improved, the survey also highlights critical areas needing immediate attention, particularly high business costs, complex taxation, and delays in contract enforcement,” OICCI CEO and Secretary General M. Abdul Aleem said.

Founded in 1860, the OICCI is Pakistan’s oldest business chamber and one of South Asia’s leading forums for multinational investors.