Pakistan’s investment-to-GDP ratio tells a story of economic underachievement: just 13.8 percent in 2025, cementing its position as Asia’s laggard. This pales against Bangladesh’s 22.4 percent and the robust 30 percent-plus in India and Vietnam, highlighting a widening regional chasm.
The downward spiral is clear—from 15.6 percent in fiscal 2022 to 13.1 percent in 2024, with a slight climb back. Political narratives of hybrid stability mask eroding investor sentiment, rooted in unaddressed structural impediments.
Industrial setups demand enduring 25 regulatory hoops, stretching timelines and amplifying risks. Corporate feedback on the Investment Facilitation Council is scathing in private circles; while leadership is execution-focused, its stringency stifles strategic flexibility.
Export trends mirror the malaise: a plunge to $2.32 billion in December from $2.85 billion in October, followed by a $3.06 billion recovery in January 2026. Imports stuck at $5-6 billion exacerbate the trade imbalance, draining reserves.
PRIME’s Mariam Ayub encapsulates the issue: ‘Structurally detached from peers, Pakistan’s investment woes transcend temporary woes, flagging profound internal constraints.’
To reverse course, Pakistan needs transformative reforms—streamlining approvals, invigorating investment councils, and fostering an innovation-friendly ecosystem. The stakes are high in Asia’s competitive landscape.