By The South Asia Times

ISLAMABAD -  Pakistan is not an “un-investable” economy, Adviser to the Pakistan Finance Minister Khurram Schehzad said on Thursday, rejecting recent commentary that portrays the country as unattractive for investors and warning against what he described as selective use of data and outdated assumptions.

 

In a detailed post on X, Schehzad said a fact-based assessment of official indicators and recent investment decisions presents a “markedly different picture” of Pakistan’s economic outlook, pointing to renewed foreign investor confidence, industrial recovery, and visible macroeconomic stabilization.

 

Addressing claims that Pakistan is becoming un-investable, Schehzad cited the latest Overseas Investors Chamber of Commerce and Industry (OICCI) Investor Sentiment Survey, which shows 73 percent of foreign investors already operating in Pakistan consider the country viable for new foreign direct investment (FDI), up from 61 percent previously.

 

“This is the most credible measure of investability,” he said, noting that it reflects the views of investors with capital already deployed in the country.

 

Schehzad also pointed to recent expansion decisions by multinational firms. Nestlé, he said, has announced an additional $60 million investment to position Pakistan as a regional manufacturing and export hub supplying 26 international markets. Such export-oriented investments, he argued, are inconsistent with the notion of an economy in decline.

 

In the energy sector, SOCAR, Azerbaijan’s state oil company and a global energy major with operations in more than 20 countries, has announced it is finalizing an investment in Pakistan’s oil and gas sector next month. According to Schehzad, the company cited Pakistan’s market depth, rising energy demand, and reform momentum as key factors.

 

- Industrial activity and new entrants

 

Responding to assertions that investors are exiting and de-industrialization is accelerating, Schehzad said economy-wide data does not support a collapse narrative. He noted that around 20 foreign investors have entered Pakistan over the past 15 to 18 months, while several large domestic firms have expanded operations.

 

Among the foreign names he listed were Google, BYD, Aramco, Abu Dhabi Ports, Samsung, Turkish Petroleum, Etisalat, Mashreq Digital, and international financial institutions involved in the Reko Diq project.

 

Industrial indicators, he added, also show recovery. Large-Scale Manufacturing (LSM) grew 6 percent year-on-year during July to November FY26, while sectoral data for the first half of FY26 shows automobile sales up 32 percent, cement 10 percent, fertilizer 24 percent, petroleum 2 percent, and mobile phone sales 20 percent.

 

While acknowledging sector-specific stress during economic stabilization, Schehzad said this does not amount to systemic de-industrialization.

 

- Macroeconomic stabilization

 

Schehzad also dismissed criticism that the government’s stabilization narrative is disconnected from reality, pointing to what he described as measurable improvements in key indicators.

 

According to the data he cited, inflation has fallen from 23.4 percent to 4.5 percent, foreign exchange reserves are up more than 55 percent year-on-year, and Pakistan recorded a current account surplus of $2.1 billion in FY25, its first in 14 years. He added that import cover has improved to over 2.6 months, public debt has declined to around 70 percent of GDP, and a primary fiscal surplus of 2.4 percent of GDP has been achieved.

 

- External balance and recovery

 

Addressing concerns over a $1.17 billion current account deficit in the first half of FY26, Schehzad said the figure reflects economic recovery rather than renewed stress. He highlighted remittances of $19.7 billion, up 11 percent year-on-year, and a record $437 million in technology exports in December 2025, the highest monthly level on record.

 

He added that nearly 80 percent of imports consist of raw materials, intermediates, and capital goods, indicating productivity-linked demand rather than consumption-driven imbalance.

 

“This is the expected profile of an economy re-accelerating after stabilization,” Schehzad said, urging analysts to rely on comprehensive data rather than isolated indicators when assessing Pakistan’s economic trajectory.