Investing in Pakistan in 2026
South Asia
32
Score
Caution Investment Destination
Significant risks present - experienced investors with hedging strategies
Pakistan earns an investment score of 32/100, placing it in the caution category for global investors. Significant risks present - experienced investors with hedging strategies. The country's standout dimensions are growth potential (45/100) and economic health (32/100), with overall GDP of $375B and per-capita output of $1,500. Growth is running at 2.5% with 0.5% of GDP arriving as foreign direct investment. Inflation is elevated at 12.0%, a key risk to watch. The sovereign holds a NR credit rating, generally considered speculative-grade with elevated default risk. Investment opportunities cluster around Textiles & Apparel (sector score 55/100, currently stable), which represents 8% of GDP. Trade openness sits at 28% of GDP, a useful proxy for how integrated Pakistan is with the global economy.
How Pakistan's investment score has evolved over time
Textiles & Apparel
8% of GDP, stable
IT & Services
3% of GDP, growing
Agriculture
22% of GDP, stable
Construction
4% of GDP, growing
World Bank Governance Indicators (-2.5 to +2.5, higher is better)
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Is Pakistan a safe country to invest in?
Pakistan carries a caution risk rating with an overall investment score of 32/100. Significant risks present - experienced investors with hedging strategies. Sub-scores: economic health 32/100, political stability 18/100, business climate 32/100, financial strength 28/100, growth potential 45/100.
What is Pakistan's sovereign credit rating?
Pakistan holds a credit rating of NR, reflecting its ability to meet sovereign debt obligations. Credit ratings are a key signal of macro-financial health and a prerequisite many institutional investors require before allocating capital.
What are the strongest sectors for investment in Pakistan?
The top investment sectors in Pakistan are Textiles & Apparel, IT & Services, Agriculture. Textiles & Apparel leads with a sector score of 55/100 and represents 8% of GDP. Its current trend is stable.
What is Pakistan's GDP growth rate?
Pakistan's most recent GDP growth was 2.5%, with total GDP of $375B and GDP per capita of $1,500. Inflation is running at 12.0% and the current account balance is -1.5% of GDP.
How does Pakistan score on governance and rule of law?
On the World Bank Governance Indicators (scale -2.5 to +2.5, higher is better), Pakistan scores: political stability -2.0, rule of law -0.8, corruption control -0.8, and regulatory quality -0.6.
Can foreigners invest in Pakistan?
Most industries in Pakistan are open to foreign direct investment, though specific sectors may require a local partner, government approval, or special licensing. Consult a qualified local advisor for restrictions that apply to your sector.
What is foreign direct investment (FDI) like in Pakistan?
Foreign Direct Investment in Pakistan runs at 0.5% of GDP, while the trade openness ratio (exports + imports as a share of GDP) stands at 28%. These figures show how integrated Pakistan is with the global economy and how welcoming it has been to international capital.
What is the public debt level in Pakistan?
Pakistan's government debt stands at 75% of GDP. This is within range for advanced economies but worth monitoring.