Why Pakistan deserves a second look from long-term Gulf investors 

Gulf investors have built enduring value by backing economies early, investing through cycles, and focusing on fundamentals rather than headlines. That perspective is particularly relevant when assessing Pakistan today. 

After a difficult but necessary adjustment, Pakistan’s macroeconomic position has stabilized meaningfully. Inflation has fallen sharply from crisis levels, with the Consumer Price Index (CPI) averaging around 5 percent in the most recent period, interest rates on a downward path, and business sentiment improving. The external account has turned a corner: the current account has moved into surplus, foreign exchange reserves have rebuilt to multi-year highs, and the currency has shown sustained stability. Policy signals have also shifted, with a clearer emphasis on export-led growth and a more facilitative role for the state in enabling private-sector competitiveness. 

There is also strong ownership at the highest level of government around digitizing and documenting the economy, a shift that is expected to broaden the tax base, strengthen digital infrastructure, and create sustained demand for private-sector services. These shifts matter because they restore predictability, the single most important input for long-term capital. 

This improvement is increasingly reflected in external assessments. International financial institutions and credit rating agencies have acknowledged Pakistan’s reform momentum, while a recent survey conducted by The Overseas Investors Chamber of Commerce and Industries (OICCI) shows that 73 percent of its members view Pakistan as a viable destination for continued investment. 

Pull-quote: Pakistan’s market size, proximity, and expanding digital economy align naturally with the Gulf’s long-term investment approach. 

- Aamir Ibrahim

Confidence among capital already on the ground is returning, often ahead of broader perception. Beyond macro stabilization, Pakistan’s long-term appeal lies in scale and structure. With a population nearing 260 million and a median age under 30, it is one of the world’s largest youth-driven markets. Demand across financial services, technology, health care, education, and consumer services is structural rather than cyclical. 

Equally important, Pakistan has already built national-scale digital public infrastructure. Broadband connectivity is widespread; digital payments are embedded in daily life, and real-time, low-cost transaction platforms support millions of individuals and businesses. This foundation materially lowers execution risk and enables rapid scaling for investors with the right operating partners. 

That infrastructure is now entering its next phase. Upcoming spectrum auctions, including 5G, will enhance broadband capacity and quality, enabling advanced use cases across industry, logistics, health, and financial services. At the same time, the documentation and digitization of the economy is accelerating, expanding the formal addressable market and improving transparency. There is also a growing focus on future facing sectors such as data centers, cloud infrastructure, blockchain applications, virtual assets, and applied artificial intelligence, areas where Gulf investors already bring deep experience. 

The telecom and digital services sector illustrate what patient capital can achieve. Since the mid-1990s, Dubai-based VEON group has invested more than $11 billion in Pakistan and continues to invest over $300 million annually. These investments were made across economic cycles, guided by a long-term view. Today, they support national-scale platforms in payments, connectivity, enterprise services, and digital inclusion, demonstrating that capabilities built in challenging environments can be both resilient and profitable. 

This should resonate in the UAE. The region’s own success has been shaped by early investment in infrastructure, technology, and institutions, often made ahead of consensus and sustained over decades. For many Gulf investors, South Asia is increasingly seen as a region offering scale, services-led growth, and long-term demand, built on long-standing ties in trade, logistics, energy, and finance, and now reinforced by shared digital infrastructure. Taken together, Pakistan’s market size, proximity, and expanding digital economy align naturally with the region’s long-term investment approach. 

Pakistan still requires patience. But moments when fundamentals improve faster than perceptions do, are rare and fleeting. For Gulf investors with a long-term horizon, Pakistan offers a large domestic market, improving economic predictability, and digital platforms that already serve tens of millions of users. Pakistan now deserves a second, more careful look. 

- The author is an Executive Committee member of VEON Group, CEO of JazzWorld and a member of Pakistan’s Cashless Economy Initiative.