Closer ties with foreign firms to expand industries

The Express Tribune reported that analyst Shahid Anwar is urging Pakistan to judge foreign investment by its lasting impact, including export income and links with local suppliers, rather than capital inflows alone. Net FDI was about $495 million in July and August 2026, up from $399 million a year earlier, but full-year receipts were lower in FY26 than FY25, at $1.67 billion versus $2.48 billion. World Bank figures cited in the report show investment has stayed below 1% of GDP since 2010.

Power and financial businesses together took most net FDI during the first nine months of FY26, while telecom recorded a $465.5 million outflow. The article argues that partnerships between Pakistani manufacturers and overseas firms could combine local production with technology and access to foreign buyers, though such arrangements remain difficult for many smaller businesses. Anwar also proposed a 10-year assessment of projects based on exports, local sourcing and foreign-exchange costs, alongside annual reviews and incentives tied to verified outcomes.