With no sign of a resolution to ongoing geopolitical conflicts, attracting foreign investment is quite challenging in the current global landscape, but can be certainly feasible with the right approach.

It requires a well-defined strategy and a supportive environment that offers investors the necessary incentives and protections to make investments in a country. In Pakistan, particularly, the situation is complex.

The scale, speed, and impact of investments are highly uncertain, yet the potential for transformative economic and market forces remains significant. To attract and manage investments effectively, investment promotion agencies (IPAs) need to reevaluate and modernize marketing strategies to maintain relevance and competitiveness.

For investors, understanding national fundamentals is crucial, and the difference between successful and unsuccessful investments could become more pronounced. Therefore, adopting a flexible and dynamic approach is essential, with rule of law as an essential factor. Preparing to adjust strategies and asset allocations in response to shifting opportunities and outcomes will be key to successfully navigating the evolving investment landscape where nearshoring and friend-sharing are becoming stronger trends.

During the past three years, there has been quite a lot of policy discussion on potential inbound investment primarily from the Middle East and China, and several initiatives have been taken, including the recent visa-on-arrival and exemptions on visa fees to boost inbound tourism and in the spirit of attracting large-scale investors from partner countries.

The Foreign Investment (Promotion and Protection) Act, 2022, and the Pakistan Investment Policy (PIP) 2023 were designed to transform Pakistan’s investment landscape; increase the investment-to-GDP ratio from 15 per cent to 20 per cent; and establish the........

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