A Downward Trend.

According to data released by the State Bank of Pakistan on Monday, it is not surprising that FDI has been declining since the onset of the financial year due to economic and political vulnerabilities. However, there was an increase in inflows by 10 percent in February compared to the same month last year, with China, Japan, and Switzerland being the leading FDI countries.

The Pakistani rupee has significantly depreciated, and black: market trading has increased. Pakistan's foreign direct investment has never been exceptional, with notable years being FY07 and FY08 when numbers exceeded $5 billion annually. The economy is currently on the brink of default, and capital controls, letters of credit issues, and the derailed IMF bailout programme have worsened the figures.

It is important to acknowledge international concerns of foreign investors as a decrease in overall appetite is being observed, and the state of Pakistan's economy is causing reluctance. We must focus on confidence: building measures to help investor capacity and attract more FDI, as an over: reliance on foreign borrowing has...