Pakistan’s investment-to-GDP ratio of 13.8% in 2025 falls significantly below Bangladesh’s 22.4%, positioning Pakistan as Asia’s lowest-investing major economy, as per a recent report. In comparison, countries like India and Vietnam maintain investment levels above 30%, with Pakistan peaking at 15.6% in FY22, according to The Express Tribune.
Despite relative macroeconomic stability, Pakistan struggles with weak investor sentiment and outcomes due to unaddressed structural barriers. The report notes that setting up an industrial project in Pakistan still involves navigating through approximately 25 regulatory permissions, leading to delays and increased uncertainty.
The report also highlights a decline in Pakistan’s investment ratio from 15.6% in FY22 to 13.1% in FY24, before slightly recovering to 13.8% in FY2025. In contrast, India maintains investment levels between 32-35%, and Vietnam between 30-33%. Economists cited in the report suggest that Pakistan’s sub-15% investment levels limit its growth potential compared to its peers.
Exports from Pakistan dropped from $2.85 billion in October to $2.32 billion in December but saw a rebound to $3.06 billion in January 2026. Meanwhile, imports have consistently remained high at around $5-6 billion, leading to significant trade deficits for the country.
According to Maryam Ayub, a Research Economist at the Policy Research Institute of Market Economy (PRIME), Pakistan’s investment ratio is notably lower than that of its regional counterparts, indicating deep-seated domestic constraints rather than temporary weaknesses.
