British International Investment terms Pakistan's stabilisation 'encouraging', but calls for policy consistency

British International Investment, the UK government's development finance institution, told Business Recorder that the country's recent economic advances are a positive sign. Its head of Pakistan, Imtiaz Saithna, said the gains toward stability could strengthen investor confidence, though he stressed that ongoing reforms and steady policy are needed to keep momentum going.

The comments come as the economy went through a stage of gradual recovery, with GDP growth at 3.7% in fiscal year 2025-26. Saithna listed conditions for attracting capital, including a regulatory setting that is predictable, easier business operations and stronger institutions. He argued that the country has capable firms and strong demand, and that the real obstacle is directing long-term funding to smaller businesses, farmers and women entrepreneurs.

BII, formerly the CDC Group and active in Pakistan since 1987, also pointed to $50 million placed in Bank Alfalah for climate finance and $75 million support for HBL. Separately, the institution said it has invested in Mega Motors, and it described a $15 million commitment to a risk-sharing arrangement with PMIC that could expand lending by as much as $30 million.