By Commerce Reporter
LAHORE: Prominent businessman and senior member of the Founders Group, Khadim Hussain, has called on the government to urgently redesign its foreign direct investment (FDI) strategy in order to revive investor confidence and boost economic growth. Khadim Hussain, who also serves as a Board Member of the Pakistan Stone Development Company and Senior Vice President of the Ferozepur Board, highlighted the significant gap between Pakistan and its regional peers in terms of FDI inflows.
In a detailed statement, Khadim Hussain recalled that in 2007–2008, Pakistan, India, and Vietnam were all identified as the fastest-growing economies in the region, each boasting a GDP growth rate of around 6%. However, by 2024, both India and Vietnam managed to sustain and build on their economic progress, while Pakistan fell behind due to structural weaknesses and policy failures.
He pointed out that India succeeded in attracting $71 billion in FDI in 2024, while Vietnam brought in approximately $25 billion, often surpassing 6% annual FDI growth. In stark contrast, Pakistan’s average annual FDI has declined to around $2 billion, despite the country’s large population, strategic location, and untapped economic potential.
According to Khadim Hussain, the lack of consistent economic policies, currency fluctuations, bureaucratic hurdles, and persistent security concerns have discouraged foreign investors from entering or expanding operations in Pakistan. He stressed that without addressing these fundamental issues, Pakistan will continue to miss out on opportunities that its neighboring countries are capitalizing on.
“The government needs to create a more stable and attractive investment environment,” he said. “This includes policy continuity, easing of regulations, protection of investor rights, and infrastructure improvements.” He added that regional competitors like India and Vietnam have made strong policy reforms over the years, which have built investor trust and encouraged long-term commitments from international companies.
Khadim Hussain urged the government to learn from global best practices and engage with stakeholders from the public and private sectors to develop a modern and business-friendly FDI policy. He concluded that reviving FDI is essential not just for short-term economic recovery but also for creating jobs, enhancing industrial growth, and ensuring sustainable development in Pakistan.
