By Junaid Qaiser
For a large part of the past decade, Pakistan’s economy has been stuck in a frustrating cycle: low investment, burdensome regulations, and shaky investor confidence. Structural weaknesses, combined with political uncertainty and economic stress, have repeatedly hampered reform efforts. However, recent developments hint that the country might be entering a new chapter—one characterized less by quick fixes and more by coordinated institutional changes. At the forefront of this shift is the Special Investment Facilitation Council (SIFC).
The numbers tell a compelling story of change. According to the Securities and Exchange Commission of Pakistan (SECP), 21,668 new companies have been registered this fiscal year, bringing in an estimated $30.7 billion in paid-up capital. This represents a 29 percent increase compared to last year and signals a revival of entrepreneurial and investor activity that had long been muted. Notably, this momentum isn’t limited to just one sector. The information technology and e-commerce sectors are leading the way with over 4,200 new companies, followed by trade, services, and real estate—indicating that economic activity is diversifying rather than concentrating.
Foreign investment, often seen as a key indicator of confidence, is on the rise. This fiscal year, over 700 foreign investors have set up more than 500 companies, pouring in Rs1.26 billion in capital. Investors from China, the UK, Germany, the US, the UAE, and various other nations are making their mark in the Pakistani market, suggesting that attitudes towards risk are starting to change. This surge in activity didn’t just happen by chance.
The SIFC, established in 2023, was created to tackle Pakistan’s long-standing investment hurdles—like fragmented decision-making, lengthy approval processes, and inconsistent policies. It serves as a one-stop platform, uniting federal and provincial authorities under a single coordination system, with civil-military collaboration to assure investors of stability and effective execution. Its mission is clear yet ambitious: to minimize obstacles, speed up decision-making, and position Pakistan as a unified investment hub. The impact of the SIFC is especially noticeable in key sectors.
In technology and digital services, focused support and policy initiatives have led to a significant boost in IT exports and new company registrations. In agriculture and fisheries, revamped aquaculture policies and export-driven programs are paving the way for access to more lucrative global markets. The minerals and mining sector, which has long struggled with regulatory uncertainty, is now seeing renewed interest, particularly in Balochistan, where major gold and copper projects are advancing through joint ventures that promise job creation and industrial growth.
Energy and infrastructure are key components of the turnaround. With the guidance of SIFC, renewable energy projects are making strides in reducing power shortages, while new highways and economic zones are enhancing connectivity and cutting down logistics costs. Although these improvements are gradual, they tackle the structural issues that have historically deterred long-term investment. A significant boost has come from regulatory reforms. The SECP has played a crucial role in modernizing Pakistan’s corporate and compliance landscape. Initiatives like digital company registration through the eZfile system, aligning corporate laws with international standards, and tightening disclosure requirements have made it much easier and cheaper to do business.
This is reflected in Pakistan’s improved ranking in global “business entry” indicators and the steady increase in formal company registrations since 2020. Equally vital is the progress made in transparency and governance. The establishment of a comprehensive Ultimate Beneficial Ownership registry, risk-based supervision in line with FATF standards, and stricter enforcement of corporate reporting obligations have tackled long-standing issues related to financial opacity. While these reforms may not grab headlines, they are incredibly important for institutional investors who are evaluating risk and compliance.
The emerging scenario isn’t about an overnight boom, but rather a careful shift—moving away from disarray and towards better coordination. If this strategy holds, the SIFC might be viewed less as a quick fix and more as a pivotal moment in how Pakistan manages its economy. For a nation that has long been characterized by missed chances, that alone would represent a significant change.
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