Despite initiatives by the Special Investment Facilitation Council (SIFC) to stimulate investment, the investment climate in Pakistan has notably declined, hitting its lowest level in five decades.
According to data ratified by the National Accounts Committee, investment during the previous fiscal year constituted only 13.1% of the GDP.
The figure underscores the reality that the SIFC’s efforts are insufficient to meet investment goals without robust economic fundamentals and political stability. The recorded per capita income stands at $1,674.
Moreover, both the investment and savings ratios fell short of their respective targets, exacerbating the crisis in the external sector. The investment target was initially set at 15.1% of GDP but only achieved 13.1%, marking the lowest rate since the fiscal year 1973-74.
The International Monetary Fund (IMF) raised concerns regarding Pakistan’s investment targets during ongoing discussions. Frequent shifts in tax policies and discriminatory practices against the manufacturing sector have dampened investments, curtailing domestic production.
The decline in investment has further eroded the government’s ability to implement necessary infrastructure and social structure reforms, increasingly pushing the country towards reliance on debt.
