From stabilisation to growth

According to The Express Tribune, Pakistan has brought inflation under control, eased external pressures and rebuilt its foreign exchange reserves, yet these gains have not yet widened opportunity for firms and households. The column argues that stability must lead to higher production, investment, exports and employment. Net foreign direct investment reached $494.5 million in July and August, up 24.1% from a year earlier, but financial and power businesses made up much of the inflows and evidence of a wider flow into manufacturing remains limited.

Foreign investors had faced delays in repatriating profits and dividends during the dollar shortage, and the column notes that repatriation of $557.6 million in the opening two months of FY27 signals improvement. Still, that memory is likely to shape how overseas investors view Pakistan, and they want assurance that legitimate returns can be taken out. The National Citizen Survey 2026 from IPOR, drawing on in-person interviews in all four provinces, showed that 91% of respondents regard starting or running a business as hard, with taxes named the biggest obstacle.

The writer's central point is that capital must expand productive capacity in export-oriented manufacturing, technology, logistics and agro-processing, since borrowing to cover foreign-exchange gaps only postpones the problem. Tax refunds stuck for months, costly electricity and weak enforcement of contracts all shape whether a factory is viable, so reform must address operating conditions, not just headline indicators.