In a recent address to the Qatari Businessmen Association, Prime Minister Shehbaz Sharif highlighted Pakistan's improving macroeconomic indicators and invited foreign investors to explore opportunities across various sectors. Despite the government's efforts to attract foreign direct investment (FDI), recent data reveals a staggering 51% decline in total foreign investment from USD 1,429 million to USD 694 million between July 2025 and January 2026, as reported by the State Bank of Pakistan. This decline is attributed to high political and economic risks, which deter foreign investors. Sharif's government has signed numerous Memoranda of Understanding worth USD 25 to 30 billion, yet the persistent lack of investment-grade ratings from international agencies remains a significant barrier to attracting FDI (Business Recorder, February 27, 2026).
BUSINESS
Prime Minister Shehbaz Sharif Invites Foreign Investment Amid Declining Fdi
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PM Shehbaz Sharif urges foreign investment in Pakistan despite a 51% drop in FDI due to risks. Economic recovery signs exist, but textile exports decline raises concerns over overtaxing key sectors.
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