Foreign investor confidence in Pakistan’s Foreign Direct Investment (FDI) landscape has surged to 73 per cent, a notable rise from a previous figure of 61 per cent, according to a recent survey by the Overseas Investors Chamber of Commerce and Industry (OICCI).
According to a report today, Khurram Schehzad, Adviser to the Finance Minister on Economy, described the finding as a clear indication of restored confidence among overseas investors in government policies and initiatives led by the Special Investment Facilitation Council.
He stated that economic stability and a favourable investment environment have positioned Pakistan as an attractive destination for investment.
Detailing recent foreign investment inflows, the adviser noted that Nestle has announced an additional $60 million investment to establish a regional export hub. He stated this move aims to bolster local manufacturing and expand production capacity for exports to 26 countries.
Additionally, Schehzad mentioned that Azerbaijan”s state-owned energy firm, SOCAR, is set to finalise its investment in the country”s oil and gas sector this February.
The adviser highlighted a significant improvement in industrial activities, pointing to the arrival of twenty foreign investors in the last 15 to 18 months. Companies cited as entering the Pakistani market include Google, BYD, Aramco, Wafi, Abu Dhabi Ports, Samsung, Turkish Petroleum, and Nova Minerals.
The positive economic outlook is also reflected in the manufacturing sector, with large-scale manufacturing registering a six per cent increase during the initial five months of the current fiscal year.
Further signs of recovering consumer and industry confidence were observed in the first half of the current fiscal year, with vehicle sales rising by 32 per cent, cement sales by 10 per cent, fertiliser sales by 24 per cent, and mobile phone sales by 20 per cent.
In the same six-month period, remittances reached a record $19.7 billion, an 11 per cent increase, while technology exports also hit a new high of $437 million, according to the advisor.
Schehzad also observed that approximately 80 per cent of the nation”s imports consist of raw materials, intermediate components, and capital goods, suggesting that manufacturing activities are stabilising.