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flag FDI in Pakistan dropped 22% in July-August FY26 due to high costs, tax confusion, and unreliable utilities, pushing investors toward stable economies.

flag Foreign direct investment in Pakistan fell 22% year-on-year to $364 million in July-August FY26, according to the State Bank of Pakistan, with inflows dropping further in August. flag Despite government efforts like the Special Investment Facilitation Council, challenges such as high business costs, complex and inconsistent tax policies, and unreliable utilities continue to deter foreign investors. flag Net foreign investment fell 51% to $278 million, driven by declining FDI and negative portfolio investment. flag Many investors are shifting focus to more stable economies like Malaysia.

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