Pakistan’s investment challenge is turning pledges into capital and productive capacity

A Dawn commentary argues that Pakistan's investment debate is moving from headline pledges toward productive capacity. It points to Saudi interest in the Reko Diq copper-gold project, which has drawn in the Asian Development Bank, the International Finance Corporation and the US Export-Import Bank, as evidence that projects are now judged on viability and financing. The writer also cites Saudi Aramco taking a 40 per cent holding in Gas & Oil Pakistan Ltd as direct ownership with operational responsibility, not a memorandum of understanding.

The column separates interest, commitment and realisation, arguing that an MoU does not count as capital and disbursement differs from financial close. Loans and rollovers only buy time, portfolio money can leave quickly, while mines, plants, logistics and energy projects create productive capacity. Net FDI stood at about $1.64 billion in FY26, against $2.48 billion in FY25, roughly 34 per cent lower, although large projects usually disburse in phases.

The commentary calls on the Special Investment Facilitation Council to track each project through defined stages, from first interest to commercial operation and economic impact. Success, in its view, should be judged by the number of projects that reach financial close, the volume of foreign capital received, and the lasting jobs and export capacity created. Such tracking, the writer argues, would show which projects are genuinely advancing and which remain confined to documents.