Karachi, February 20, 2026 – Khurram Ijaz, General Secretary of the Businessmen Panel Progressive (BPP) and former vice president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has expressed serious concern over a sharp decline in foreign direct investment (FDI), urging the government to adopt consistent and business-friendly economic policies.
Citing official data, Ijaz noted that FDI dropped by 41 percent during the first seven months of the current fiscal year. According to the State Bank of Pakistan (SBP), inflows fell to $981 million in July–January FY2025-26, compared with $1.66 billion in the same period last year. He warned that the decline reflects eroding confidence among foreign investors due to policy uncertainty and frequent changes in the regulatory framework.
Ijaz added that domestic investors are also reluctant to launch new ventures amid unpredictable government decisions. He highlighted a contraction in private sector credit offtake, which declined to Rs627 billion during July–January FY2025-26 from Rs764 billion a year earlier. This slowdown, he pointed out, occurred despite a significant reduction in the SBP’s benchmark policy rate to 10.50 percent from a peak of 22 percent over the past year.
“The reduction in the policy rate alone is not enough to revive business confidence,” Ijaz said. He emphasized the need for long-term, sustainable economic policies that provide clarity and predictability for investors. Referring to taxation issues, he criticized the super tax, stating that it has severely affected corporate financial statements. He noted that Pakistan’s corporate tax rate is already high, and additional levies further burden businesses and citizens alike.
Ijaz urged the government to formulate a comprehensive strategy focused on ease of doing business, rationalization of taxes, and policy consistency to attract both foreign and local investment, which he described as essential for sustainable economic growth.