Attracting good-quality FDI only
Time has come for investors to see Pakistan not as a risk but as an opportunity they cannot afford to miss. photo: file
The signs of economic recovery are unmistakable. Inflation has been tamed into single digits, government borrowing costs have plummeted from 25% to 12%, remittances are pouring in at $3 billion per month, and trade and current account balances are under control.
The International Monetary Fund (IMF) bailout has unlocked funds from multilateral and bilateral lenders, debts have been rolled over for three years, foreign investments are flowing into debt markets, and Pakistan Stock Exchange's KSE-100 index is surging towards 100,000. These are early signs of hope, but the real challenge lies ahead.
We stand at the cusp of an economic transformation – a rare opportunity to reshape Pakistan's trajectory. But this moment demands vision and discipline.
A consumption-led surge beyond 3% economic growth risks reigniting trade imbalances and plunging the country back into the boom-and-bust cycles of the past. Now is the time for structural reforms and bold investments to chart a sustainable path towards 5-6% growth.
This isn't just a government effort; it's a call to action for Pakistan's entrepreneurial elite and policymakers alike. Together, we can create a Pakistan where innovation, investment, and patriotism drive progress.
While fixing the energy sector and renegotiating independent power producers' (IPPs) contracts is essential, the nation's future hinges on fostering investment, both foreign and domestic, in sectors where Pakistan has a natural edge.
Attracting high-impact investment
The focus on foreign direct investment (FDI) is timely, with the Special Investment Facilitation Council (SIFC) taking charge to clear roadblocks, resolve investor concerns, and unify stakeholders.
However, let's ensure every foreign dollar fuels industries where Pakistan excels, not just raw material exports. Value addition is our gateway to a vibrant supply chain, high-paying jobs, and globally competitive businesses.
Pakistan must attract investments that align with national priorities. Each dollar invested should yield measurable benefits: job creation, tax revenue, export growth, reduced imports, and strengthened industries.
Entrepreneurs and policymakers must work together to identify and champion high-potential sectors, ensuring foreign partnerships are mutually beneficial. Time has come for investors to see Pakistan not as a risk but as an opportunity they cannot afford to miss.
Empowering domestic investors
Our local business leaders and industrialists are no less capable than foreign investors. By mobilising domestic capital, we can drive growth without undue reliance on international funds.
Pakistani investors understand the landscape and are willing to accept competitive returns. Why pay higher premiums abroad when we can empower our own system to innovate and grow?
A thriving domestic investment ecosystem will create opportunities for global players to join a flourishing economy rather than dictate terms.
The power of shared purpose
As a nation, we must channel our resources into ventures that redefine Pakistan's economic identity. Imagine transforming the Mainline Railway into a modern transport corridor, establishing IT parks and digital-skill universities across the country, or building state-of-the-art petrochemical plants to reduce dependence on imports.
These are not mere projects; they are symbols of national pride and economic sovereignty.
We have the talent, resources, and resolve. What we need is the will to prioritise long-term prosperity over short-term gains.
Imagine offering overseas Pakistanis a Behtar Pakistan Certificate (BPC), promising USD returns of 10-11%, alongside equity stakes in transformative projects. Such initiatives could unlock billions in investment from our diaspora while reducing dependence on costly foreign bonds.
The road ahead
This is a defining decade for Pakistan. To realise its potential, policymakers must sustain fiscal and economic reforms, fostering an environment where innovation and enterprises flourish.
Entrepreneurs must rise as nation-builders, investing in projects that align profit with purpose. Together, we can build a Pakistan where the 250 million people have the tools and opportunities to thrive.
For this dream to become reality, we must act with integrity, selflessness, and a shared vision. The world is watching, but more importantly, future generations of Pakistanis are counting on us to build a nation worthy of their aspirations.
It's time to turn our patriotic pride into transformative action. Together, let's ensure Pakistan punches above its weight on the global stage – economically, socially, and politically.
The writer is an independent economic analyst