Dawn: Pakistan advised to assess investments by actual capital
In Pakistan, increasing attention is being paid to moving from investment promises and memorandums to the actual inflow of capital and the creation of productive assets. This is stated in an analytical article by Dawn on attracting funds from Middle Eastern countries and assessing the effectiveness of investment policy.
The author notes that Saudi Arabia’s interest in the Reko Diq copper-and-gold project is an opportunity for Pakistan to enter the international copper supply chain, which is important for electrification, renewable energy and the energy transition. The participation of the Asian Development Bank, the International Finance Corporation of the World Bank Group and the Export-Import Bank of the United States, in the publication’s view, shifts the assessment of major projects toward their commercial viability, financing structure and risks.
Investment instead of memorandums
The author calls Saudi Aramco’s acquisition of a 40% stake in Gas & Oil Pakistan Ltd an example of an investor’s real participation in the Pakistani market. This format entails ownership of an asset, commercial responsibility, operational involvement and a direct connection to market performance, unlike declarations of interest or memorandums of understanding.
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The article emphasizes that expressed interest is not an investment, a memorandum is not capital, and reaching financial close does not mean the actual transfer of funds. To attract long-term investors, the author believes Pakistan needs transparent asset valuation, reliable boards of directors, commercially sound business plans, predictable regulation and protection against arbitrary policy changes.
Foreign direct investment indicators
Net foreign direct investment inflows to Pakistan in fiscal year 2026 amounted to about $1.64 billion, compared with $2.48 billion in fiscal year 2025. This is approximately 34% less. Gross inflows were higher, but significant outflows reduced the volume of net investment.
Large mining, energy and infrastructure projects incur expenditures in stages: from feasibility studies, regulatory approvals and financial arrangements to construction and phased financing. The author proposes tracking projects through defined stages: identification of interest, due diligence, conclusion of an agreement, financial close, receipt of funds, construction, start of commercial operations and economic impact.
