Can Pakistan’s public relations drive unlock foreign capital?

In recent months, Pakistan has doubled down on a public‑relations strategy to showcase its investment potential. From the grand stage of the Overseas Pakistanis Convention to the Pakistan Minerals Investment Forum, the message from Islamabad is clear: Pakistan is open for business.

The Prime Minister’s pledges — from special courts for overseas Pakistanis to promises of a mineral‑sector transformation — are ambitious. Yet such declarations, however well‑intentioned, continue to hit a familiar wall: Pakistan’s investment summits remain divorced from the country’s structural realities. 

Summits and conventions can generate momentum, but they are no substitute for policy certainty or institutional reform. Long term investors demand environments where public and private contracts are honored, regulations are stable, and assets are secure. Without tackling these foundational weaknesses, even the most elaborate forums risk being mere photo‑ops.

The diaspora cannot plug systemic gaps indefinitely, nor can Pakistan’s Gulf allies or China sustain bailouts without meaningful reform. Real investment hinges on trust — and trust is built on robust institutions.

 

Dr. Vaqar Ahmed

Let us turn to the core challenges. Investors prioritize risk mitigation, yet Pakistan’s internal security dynamics remain precarious. Security is not merely about preventing violence; it is about ensuring predictability. When long‑term capital is at stake, even the perception of instability — political, legal or physical — is enough to drive investors elsewhere.

Next comes governance and institutional credibility. Pakistan’s ranking in the fight against corruption shows no meaningful improvement. The recent import restrictions — intended to preserve foreign‑exchange reserves — disrupted manufacturing and supply chains. Widespread intellectual‑property violations discourage tech investors and stifle innovation. Sector‑specific regulatory disarray, such as inconsistent mining policies across provinces, further deters multinational firms. 

Now consider the fragile macroeconomic situation. Pakistan narrowly avoided default in the recent past. Although the IMF program has provided short-term relief, long-term investor confidence demands more — specifically, the full implementation of all structural reforms that Pakistan has committed to the IMF and other donors.

What of regional trade and investment integration — or the lack thereof? Pakistan’s trade‑to‑GDP ratio remains dismally low. The freeze in trade with India, coupled with restrictive regimes governing commerce with other neighbors, has cost Pakistan billions in lost opportunity. Exporting firms are urging the government to ease border procedures and normalize trade ties with neighboring countries to unlock regional markets.

The path forward is well known, but it demands political will and sustained action from all organs of the Pakistani state. Security of lives, assets, and profits is the essential starting point for transforming Pakistan’s image.

Governance indicators must be strengthened — these metrics are closely monitored by both local and foreign investors as key decision‑making inputs. The civil service remains the cornerstone of development administration, charged with translating public policy into actionable programs and delivering essential services. Revitalising this vital institution requires comprehensive restructuring.

To attract and retain private capital, robust legal protections are equally essential. This begins with enforcing property rights and contracts through an independent judiciary and efficient commercial courts. Clear and predictable regulatory frameworks, coupled with transparent dispute‑resolution mechanisms, give investors confidence that their capital will be shielded from arbitrary action or expropriation. At all costs, private investors must be protected from extractive and corrupt practices within tax departments and regulatory bodies, which erode trust and discourage investment. Establishing dedicated investment ombudsmen, streamlining redress procedures and insulating regulators from political interference will further enhance legal certainty and foster a climate of trust for long‑term investment.

Developing countries are increasingly utilising soft power and economic diplomacy to strengthen investment cooperation. Pakistan can benefit from leveraging its cultural and diplomatic assets alongside economic incentives. A strategy to do so will involve highlighting its strategic location and vibrant diaspora. Pakistan’s influence in the Muslim world, alongside strong ties in the Gulf, UK, and North America, enhances its diplomatic reach. 

Moreover, the private sector repeatedly highlights Pakistan’s weak human capital as a major barrier to scaling operations. To address this, they suggest modernizing school and university curricula to prioritize STEM and digital competencies, promote public–private partnerships for targeted vocational and on‑the‑job training, and introduce incentives and clear career pathways to retain skilled talent in both the public and private sectors.

Rebranding Pakistan through meaningful action is crucial for shifting perceptions and attracting investment. Empowering overseas Pakistanis as active partners in reform — not merely sources of remittances — can promote a sense of ownership and commitment to the country’s future. By showcasing success stories, such as tech firms founded by diaspora talent, Pakistan can challenge negative narratives and demonstrate its potential as an innovation hub. Media diplomacy that highlights tangible progress on reforms will build credibility at home and abroad.

In conclusion, the diaspora cannot plug systemic gaps indefinitely, nor can Pakistan’s Gulf allies or China sustain bailouts without meaningful reform. Real investment hinges on trust — and trust is built on robust institutions. Investors, both foreign and domestic, are watching closely. They are not seeking perfection but rather predictability, protection, and policy coherence. 

– Dr. Vaqar Ahmed is an economist and former civil servant.