A damning new analysis spotlights Pakistan’s investment crisis, with its GDP ratio scraping 13.8 percent in 2025—Asia’s weakest link. Dwarfed by Bangladesh at 22.4 percent and regional leaders India and Vietnam over 30 percent, the numbers signal alarm bells for long-term prosperity.
Historical context sharpens the concern. The ratio’s 2022 zenith of 15.6 percent gave way to 13.1 percent in 2024, with only tepid recovery since. Despite rhetoric on stability, investor faith wanes amid unresolved systemic flaws.
The culprit? A labyrinth of 25 regulatory clearances for any industrial venture, fostering delays and doubt. Business veterans voice dismay over the Investment Facilitation Council’s inefficacy. Intended as a bureaucracy-buster, its disciplined yet inflexible leadership hampers innovative deal-making.
On the trade front, volatility reigns. December exports hit a low of $2.32 billion after October’s $2.85 billion, rebounding modestly to $3.06 billion by January 2026. Persistent $5-6 billion imports fuel a ballooning deficit, underscoring vulnerability.
Mariam Ayub, research economist at PRIME, delivers a sobering verdict: ‘Pakistan’s low investment sets it apart structurally. Economies battered by shocks still invest more, revealing deep-seated barriers at home.’
Revitalization hinges on sweeping changes: slashing red tape, empowering facilitation bodies, and rebuilding credibility. Without action, Pakistan risks perpetual lag in Asia’s economic arena.