PAKISTAN’S investment story has rarely had a more promising tailwind. The macroeconomic stabilisation under the 37-month Extended Fund Facility (EFF), supplemented by the Resilience and Sustainability Facility, has been more decisive than most observers expected. The fiscal deficit has narrowed to 5.4 per cent of GDP, with the primary surplus rising to a historic 2.4pc in FY25. Reserves have nearly doubled to $14.5 billion, inflation has fallen below 5pc, and successive sovereign upgrades by Fitch, S&P, and Moody’s have followed.

The geopolitical moment is unusually supportive. The sentiment in the international community, in the non-traditional, export-oriented sectors such as mining and digital & IT services, is extremely encouraging. This has reset the tone in how Pakistan engages capital. Reko Diq achieved financial closure in 2025 — a $7bn project backed by International Finance Corporation, the Asian Development Bank and financiers from the US, Canada, Japan and Saudi Arabia. It is projected to deliver $2.5bn in annual exports from 2028. After a near two-decade hiatus, the privatisation of PIA closed in December 2025. It is indeed a vote of confidence, and the precedent it sets for the Discos (electricity distribution companies) and other state-owned enterprises (SOEs) is more valuable than the transaction itself. It seems that Pakistan is positioning itself for an export-led take-off.

Yet the comparison that should focus our attention remains stark. Pakistan attracted $2.46bn in........

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