While the government is struggling with the privatisation of hassle-ridden state-owned enterprises (SOEs), there has been some marked progress in mergers and acquisitions (M&A) of stakes, though with lacklustre foreign investment. Official figures show 133 mergers and acquisitions during fiscal year 2025, with relevant market sources saying stakes in more private enterprises are up for sale.

The Competition Commission of Pakistan (CCP) says it approved a total of 69 M&A transactions during FY25, facilitating inflows of foreign direct investment (FDI) of approximately $50m. These transactions spanned diverse sectors, including food, finance, logistics, aerospace, media, and e-commerce.

Overseas Investors Chamber of Commerce & Industry (OCCI) Secretary-General Abdul Aleem has stressed the need to lift foreign direct investment — currently below 1pc of GDP — by simplifying regulations. “I appreciate the government’s direction, but the exit of some major multinationals highlights the urgency of improving the investment climate for both existing and prospective investors,” he said.

It may be noted here that the exit of multinationals also included entities whose parent companies took strategic decisions to restrict and consolidate their business operations in a changing global business environment.

‘Unless significant investment is made in its people, the country cannot hope to achieve economic growth’

The absence of foreign investors in the enhanced investor interest in the........

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