Pakistan Steps Up Business Reforms To Attract Local And Foreign Investment 

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Federal Minister for Board of Investment Qaiser Ahmed Sheikh said the government is taking steps to simplify business regulations, attract local and foreign investment, strengthen industry, and promote value-added exports. Speaking on the reforms, according to APP, Sheikh said a Business Facilitation Centre had been established and that the government was working with foreign experts, including experts from the United States, to streamline regulatory procedures. He said relevant institutions were also being consulted to build consensus and ensure effective implementation of the reforms, an acknowledgment that regulatory change of this scale typically stalls without buy-in from the departments responsible for actually carrying it out.

The minister acknowledged that Pakistan had lagged behind other countries in simplifying regulations, framing the current push as a concerted effort to close that gap rather than a routine policy adjustment. He pointed to incentives such as duty free or zero rated machinery, where applicable, as tools aimed at improving the competitiveness of domestic industries and encouraging export oriented production. Sheikh specifically highlighted the experience of Southeast Asian economies, where a combination of domestic and foreign investment has historically helped drive value added exports, positioning that regional model as a reference point for where Pakistan’s own reform agenda is headed.

Sheikh said Pakistan’s economic zones offer opportunities for new industries, particularly for overseas Pakistanis and foreign investors looking for a structured entry point into the domestic market. He noted that investment initiatives are also being pursued in coordination with the International Monetary Fund, with some projects offering tax incentives, tying the government’s domestic reform push to the broader fiscal framework Pakistan has been operating under as part of its IMF engagement. The minister added that improvements in Pakistan’s sovereign credit ratings reflect progress in economic management and business facilitation, while State Bank foreign exchange reserves had reached around 18 billion dollars, covering approximately three months of imports, a figure he offered as evidence of improving macroeconomic stability underpinning the reform effort.

On regional developments, Sheikh said the ongoing Iran-US conflict is creating economic challenges, particularly through higher oil prices and energy costs, a dynamic with direct implications for Pakistan’s import bill and broader cost of doing business. He said Pakistan, given its relations with both countries, could help facilitate dialogue and voiced support for diplomatic efforts to resolve the dispute. Recalling Pakistan’s earlier role in facilitating US-China contacts, Sheikh stressed the continued importance of diplomacy for regional peace and global economic stability, and separately acknowledged the military leadership’s support for the government’s diplomatic initiatives.

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