Why Pakistan's economic reforms and SEZs attract global investors

Pakistan’s investment appeal is built on scale, policy reform and a strengthened macroeconomic position. Inflation has fallen sharply from a peak of 38 per cent in 2023 to 4.1 per cent in July 2025, while the government posted a primary surplus of 2.4 per cent of GDP in 2025 — the highest in recent decades.

Regulatory streamlining is a central focus. Efforts to reduce bureaucracy across federal and provincial authorities have seen 169 regulatory reforms approved to date, designed to simplify processes and improve coordination, and a new national investment facilitation centre is now operational.

Special economic zones (SEZs) also play a key role. The Board of Investment’s 2025 MoU with the UAE’s International Free Zones Authority is designed to boost investment in Pakistan’s SEZs, which offer long-term tax incentives and customs relief while promoting value-added industries. “The main bottlenecks for investors have been bureaucratic hurdles and lack of clear regulation,” says Federal Minister of Investment Qaiser Ahmed Sheikh. “SEZs now provide greater incentives and opportunities.”

The Pakistan Board of Investment is the key agency for attracting domestic and foreign investors.

What are your current strategic priorities?

The first priority must be investment, both domestic and foreign. Pakistan, the fifth most populous country in the world, is centrally located as a gateway to Central Asia, and our strengths are well recognised. Around 60% of our population is under 30, giving us a strong demographic advantage. The stock exchange has shown phenomenal growth, exports are accelerating and imports are also increasing. We have cordial relations with the UAE and China, making their investment crucial.

How is UAE investment in Pakistan progressing?

The UAE has pledged $10 billion of investment in Pakistan. Their banks and companies are active, especially in ports such as Karachi Port Trust and Port Qasim. Pakistan offers opportunities in maritime and transport infrastructure, essential for serving as a gateway to Central Asia.

Pakistani investment in UAE real estate is about $12 billion – officially the second largest worldwide. Relations between Pakistan and the UAE are long-term and close, encouraging continued investment both ways.

Which sectors hold the greatest potential for Emirati investors?

Pakistan’s ports have capacity for much larger infrastructure and trade. Currently, imports and exports use only 50–60 per cent of that capacity. With proper transportation links to Central Asia and western China, the potential is vast. All major rating agencies have upgraded Pakistan’s outlook, creating strong prospects for investors.