New Delhi, Jan 4 (NationPress) The investment landscape in Pakistan is deteriorating, as recent statistics and developments reveal that the country is failing to attract both domestic and international capital, despite numerous policy measures. Pakistan’s investment-to-GDP ratio is stagnant at approximately 13.1%, significantly lower than the regional average of over 30%.

This situation positions Pakistan as one of the weakest performers in its vicinity, where elevated investment levels have facilitated economic growth, increased productivity, and enhanced competitiveness.

Economists assert that this disparity indicates entrenched structural issues rather than temporary economic disturbances.

The situation has cast a shadow over the Special Investment Facilitation Council (SIFC), established two years ago with the objective of expediting substantial investments and alleviating bureaucratic obstacles.

Supported by both civilian and military authorities, the SIFC was envisioned as a potent instrument to rejuvenate Pakistan’s sluggish economy by drawing foreign capital.

However, two years later, the council’s achievements have significantly fallen short of initial expectations. Despite its extensive authority and high-level backing, the SIFC has not managed to secure meaningful investment inflows.

While a number of high-profile meetings and announcements have occurred, most proposed projects remain mired in discussions.

Investor confidence has not improved, and capital inflows continue to be weak.

Even among policymakers, there is a subtle acknowledgment that the SIFC has not delivered the promised outcomes.

Instead of reassessing the overall strategy, authorities seem to be persisting with the same approach.

At a recent conference held by the Pakistan Business Council in Islamabad, the SIFC’s national coordinator suggested a change in direction.

He recognized that foreign investors are unlikely to commit to Pakistan unless local investors restore their confidence.

To remedy this, he hinted that the government would provide enhanced support to major local business entities.

Nonetheless, analysts contend that this strategy overlooks the core issue. They argue that extending special incentives to a select group of influential investors only reinforces the unequal business landscape that has deterred investment for decades.

Rather than addressing systemic deficiencies, such actions are perceived as exacerbating existing distortions.

Pakistan’s economic framework has long been dependent on selective incentives, wherein well-connected enterprises receive benefits and privileges while the wider private sector grapples with red tape, unpredictable taxation, and frequent policy shifts.

Critics believe the SIFC has formalized this model by creating an alternative pathway that circumvents standard procedures instead of enhancing them.