LAHORE: The Pakistan Industrial and Traders Association Front (PIAF) has urged policymakers to broaden the scope of foreign direct investment (FDI) beyond the energy sector, warning that overreliance on power projects is stifling Pakistan’s wider economic growth potential.
PIAF Patron-in-Chief Mian Sohail Nisar said foreign investors continue to channel most funds into energy despite vast opportunities in mining, manufacturing, and IT. “Heavy concentration of capital in one sector is concerning. Pakistan must attract value-added and technology-driven investments,” he noted.
According to the State Bank of Pakistan, FDI stood at $2.46 billion in FY25, with $1.17bn—nearly half—flowing into the power sector. China led inflows with $1.23bn, followed by Hong Kong, UAE, Switzerland, and the UK.
Business leaders stressed that stable policies, transparent regulations, and tax reforms are critical to draw investment into untapped sectors such as mining and information technology, which can generate jobs, exports, and long-term growth.
Story by Shahram Haq
