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FDI in Pakistan dropped 22% in July-August FY26 due to high costs, tax confusion, and unreliable utilities, pushing investors toward stable economies.
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.
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.
Net foreign investment fell 51% to $278 million, driven by declining FDI and negative portfolio investment.
Many investors are shifting focus to more stable economies like Malaysia.
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La IED en Pakistán cayó un 22% en julio-agosto del año fiscal 26 debido a los altos costos, la confusión fiscal y los servicios públicos poco confiables, lo que empuja a los inversores hacia economías estables.