Pakistan's Investment-GDP Ratio At 13.8 Pc Remains Lowest In Asia: Report

(MENAFN- IANS) New Delhi, Feb 21 (IANS) Pakistan's 13.8 per cent investment‐to‐GDP ratio ranks far below Bangladesh's 22.4 per cent in 2025 despite latter having a turbulent economy, underscoring Pakistan's position as the lowest‐investing major economy in Asia, a new report has said.

Regional peers such as India and Vietnam continue to sustain investment levels above 30 per cent contrasted with Pakistan, which in it FY22 peak only achieved 15.6 per cent, the report from The Express Tribune said.

Despite macroeconomic stability under the current hybrid and multiparty setup, investor sentiment and outcomes remain weak as structural barriers remain unaddressed, the report said. Executives told the publication that establishing an industrial project still requires about 25 regulatory permissions, prolonging timelines and raising uncertainty, the report said.

"Senior corporate executives privately acknowledge frustration with the performance of the investment facilitation council, which was designed as a single-window platform to cut red tape. While its leadership is widely viewed as disciplined and execution-oriented, business representatives argue that the same rigidity has constrained innovation in investment strategy", the report said.

It highlighted Pakistan's investment ratio declined from 15.6 per cent in FY22 to 13.1 per cent in FY24 before recovering to 13.8 per cent in FY2025, while India sustained 32–35 per cent and Vietnam 30–33 per cent. The report cited economists saying sub‐15 per cent levels cap Pakistan's growth potential far below peers.

Exports fell from $2.85 billion in October to $2.32 billion in December before rebounding to $3.06 billion in January 2026, while imports remained structurally high around $5-6 billion, sustaining large trade deficits.

"Pakistan's investment ratio is structurally disconnected from the region," said Maryam Ayub, Research Economist at the Policy Research Institute of Market Economy (PRIME). "Even economies facing shocks maintain much higher investment than Pakistan, which indicates deep domestic constraints rather than temporary weakness," Ayub was quoted as saying.

-IANS

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