A prominent business leader today issued a stark warning that Pakistan must be prevented from becoming an uninvestable country, citing a severe collapse in investor confidence and policies that have broken the public’s backbone.
According to a statement on Thursday, Shahid Rasheed Butt, a former president of the Islamabad Chamber of Commerce, declared that current policies have shattered the hopes of the nation’s youth and its business community, creating an environment where professionals are emigrating and investors are withdrawing.
Mr Butt revealed that foreign direct investment recorded a staggering 43.3 per cent decline from July to December 2026. He added that portfolio investment was negative 225.1 million dollars during the same period, a slight deterioration from the negative 221.8 million dollars recorded in the previous year, reflecting a clear lack of investor trust.
The worrying economic picture is compounded by a 5 per cent drop in exports during the first half of fiscal year 2026, which contributed to the current account deficit widening to 1.174 billion dollars, a figure exceeding that of the corresponding period last year.
Mr Butt described the foreign exchange reserve situation as concerning for the future, noting that while total reserves stand at 21.3 billion dollars, the 16.1 billion dollars held by the State Bank of Pakistan is largely composed of borrowed funds.
He highlighted mixed performance in the agricultural sector. While overall growth reached 2.9 per cent in the first quarter of the current fiscal year, major crops excluding wheat experienced a 0.7 per cent decline. Cotton production fell by 1.2 per cent, green fodder output plummeted by 14.4 per cent, and a 13 per cent rise in fertiliser prices has created significant challenges for farmers.
Evidence of stagnant private sector investment was clear in credit disbursement figures, which fell to 578.4 billion rupees from July to January, a sharp reduction from the 1.520 trillion rupees disbursed in the same period last year.
Mr Butt stressed that an economic recovery is not possible without immediate policy reforms. He cautioned that ongoing uncertainty will fuel higher prices, job losses, and a further reduction in private investment.
He called for an end to the practice of shifting the consequences of elite mismanagement onto the public. The business leader urged the government to consult with the business community, exporters, and farmers before implementing new fiscal or regulatory measures, stating that without restoring policy predictability, any economic stabilisation efforts will remain fragile.