By Commerce Reporter
LAHORE: Tanveer A Sheikh, Senior Vice President of the Lahore Chamber of Commerce and Industry has expressed deep concern over the sharp decline in Foreign Direct Investment (FDI) during July-April FY26, calling it a serious challenge for Pakistan’s economic stability and future growth prospects.
According to figures released by the State Bank of Pakistan, Pakistan received only USD 1.409 billion in FDI during the first ten months of FY26 compared to USD 2.035 billion during the corresponding period of the previous fiscal year, reflecting a worrying decline of 31 percent.
The Senior Vice President said that the substantial decrease in foreign investment clearly indicates weakening investor confidence in Pakistan’s economy. He stressed that foreign investors seek political stability, policy continuity, transparent regulations, and ease of doing business before committing long-term investments.
He noted that FDI plays a critical role in strengthening the economy by supporting industrial expansion, creating employment opportunities, boosting exports, and introducing advanced technology and expertise into the country. A sustained fall in investment inflows, he warned, could negatively affect Pakistan’s economic recovery efforts and weaken the industrial sector.
The LCCI representative emphasized that Pakistan possesses enormous economic potential due to its strategic geographic location, large consumer market, and growing entrepreneurial base. However, inconsistent economic policies, high cost of doing business, currency instability, and complicated taxation procedures continue to discourage international investors.
He urged the government to immediately introduce investor-friendly policies aimed at restoring confidence among foreign companies and multinational firms. He said that ensuring continuity of economic policies and reducing unnecessary bureaucratic hurdles are essential to attract sustainable investment.
The Senior Vice President further stated that law and order, energy availability, and a predictable regulatory environment remain key concerns for foreign investors. He added that improving infrastructure, simplifying business registration procedures, and ensuring protection for investors would help Pakistan compete effectively with regional economies.
He also called for stronger coordination between government institutions and the business community to formulate practical economic policies that encourage investment and industrial growth. According to him, the private sector must be taken into confidence while making major economic decisions.
The LCCI official appreciated recent efforts aimed at stabilizing the economy but stressed that more concrete and long-term measures are needed to reverse the declining investment trend. He said Pakistan cannot achieve sustainable economic growth without attracting significant foreign capital.
He urged policymakers to focus on export-oriented industries, technology sectors, renewable energy, and manufacturing to create a favorable environment for international investors. He added that restoring investor confidence should be treated as a national economic priority.
The Senior Vice President reaffirmed the Lahore Chamber’s commitment to supporting government initiatives designed to improve the investment climate and strengthen Pakistan’s economic foundation. He expressed hope that timely reforms and policy consistency would help restore foreign investors’ trust and place the economy back on the path of sustainable growth.
