BMPP leader urges stable economic policies to restore investor confidence and attract sustainable foreign investment into Pakistan.
Khurram Ijaz, General Secretary of Businessmen Panel Progressive (BMPP) and former vice president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed serious concern over the sharp decline in foreign investment into Pakistan during the first 10 months of fiscal year 2025-26, warning that weak investor confidence and inconsistent economic policies are damaging the country’s investment climate.
Reacting to the latest data released by the State Bank of Pakistan, Khurram Ijaz noted that net foreign investment — including both public and private inflows — stood at only $32 million during July–April 2025-26, compared with $1.46 billion recorded in the corresponding period of the previous fiscal year.
“This massive decline in net foreign investment is alarming and reflects the growing concerns of investors regarding Pakistan’s economic direction,” Khurram Ijaz said.
He urged the government to formulate long-term and investor-friendly economic policies aimed at attracting sustainable foreign investment and curbing capital outflows from the country.
Khurram Ijaz also expressed concern over a 31 percent decline in foreign direct investment (FDI) during the period under review. According to the central bank’s data, FDI fell to $1.41 billion in the first 10 months of FY2025-26 from $2.04 billion in the same period of the last fiscal year.
“Foreign investors are reluctant to invest due to uncertainty in economic policies and the absence of a predictable business environment,” he said.
He emphasized that frequent changes in taxation measures and economic regulations have negatively impacted both foreign and domestic investment sentiment.
“Policy inconsistency, especially in tax-related matters, has created uncertainty for investors and discouraged long-term investment planning,” Khurram Ijaz added.
He stressed that restoring investor confidence should be the government’s top priority, adding that policy stability and strong macroeconomic management are essential to reversing the declining trend in foreign inflows.
“Improving investor confidence, ensuring continuity in economic policies, and strengthening macroeconomic fundamentals will be key to attracting foreign investment and supporting economic growth,” he concluded.