Pakistan has seen economic stabilization for the past 18 to 24 months. Yet signs of fresh investment remain elusive. Promises and claims abound, but no substantial new projects are materializing. Neither local investors nor foreigners are committing to new ventures, except in the mining and new energy vehicles (NEV) sectors.

The pressing question is why investment is missing, and how stability can translate into real growth.

Investment as a share of GDP in the last two years has fallen below 14 percent. This is the lowest since 1974. Foreign direct investment (FDI) is dismal. Of the 2.5 billion dollars in FDI reported last year, 2.2 billion was retained earnings, profits earned by foreign investors but not repatriated as dividends. This means fresh investment in FY25 was a mere 300 million dollars. It was even less in FY24.

The stock market has broken records over the last two years. The index has more than tripled. New accounts are being opened, which is promising. However, new listings remain scarce. Curiously, foreigners continue to be net sellers. They offloaded shares worth 355 million dollars last year. Why is foreign portfolio investment negative when the stock market is booming?

There were hopeful talks of 75 to 100 billion dollars in FDI from the Middle East. In reality, the........

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