Pakistan’s investment-to-GDP ratio is at its lowest in fifty years, despite promises of tens of billions in foreign investments and support from the highest offices in the country. The establishment of the Special Foreign Investment Council (SIFC) was meant to signal the state’s commitment to improving investment, but the results have been disappointing. Foreign Direct Investment (FDI) reached $1.5 billion in the first ten months of FY24. However, this figure includes retained profits awaiting repatriation, meaning the actual FDI could be close to zero without these forced retentions.

The government is attempting to negotiate a $6-8 billion IMF programme to reduce the gross financing gap. However, negotiating with the IMF is not the same as negotiating with private financial institutions. This approach is faltering, prompting high officials to make a fresh trip to the UAE for additional financing. This pattern of seeking incremental funds to survive has persisted over the last two........

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