The combination of a growing young workforce, government reforms, and strategic investment incentives continues to make Pakistan an attractive destination for foreign investors. While political and security challenges require careful management, Pakistan’s underlying fundamentals and sectoral prospects remain solid. With continued policy support and enhanced investor facilitation, FDI is expected to rebound and grow steadily beyond FY25.

During the first seven months of Fiscal Year 2025 (July 2024 to January 2025), Pakistan attracted approximately USD 1.52 billion in net Foreign Direct Investment (FDI), representing a robust 56% year-over-year increase. This impressive growth underscores rising investor confidence in key sectors such as energy, financial services, and oil and gas, which have been the primary drivers of inward capital flows.

Despite this strong start, recent months have witnessed some volatility. Notably, May 2025 recorded a 37% decline in FDI inflows compared to the previous month, reflecting a temporary cooling driven by political transitions and ongoing global security considerations. While short-term fluctuations are natural in emerging markets, the overall yearly trajectory remains optimistic and points toward sustained foreign investment growth.

China remains the dominant foreign investor in Pakistan, contributing to over 43% of all net FDI in FY25. This strong presence is part of the broader China-Pakistan Economic Corridor (CPEC) initiative, which continues to attract substantial infrastructure and energy investments. Following China, the United Kingdom, Hong Kong, and Switzerland are also significant sources of investment.

Several sectors in Pakistan currently offer high-growth potential for dollar-based investors:

1. Infrastructure and Energy: Through the China–Pakistan Economic Corridor (CPEC), more than USD 60 billion has been allocated to infrastructure development. This includes road and rail connectivity, special economic zones, and power generation. The International Finance Corporation (IFC) recently committed to unlocking USD 2 billion annually in project financing, particularly in transport, water systems, digital infrastructure, and energy over the next decade.
2. Mining and Natural Resources: The Reko Diq copper-gold project, estimated to hold one of the world’s largest untapped reserves, has become a centre of attention. Barrick Gold and other foreign investors, including U.S.-linked entities have shown strong interest in developing this mine, which could be worth over USD 7 billion in potential investment and future exports.
3. Digital Economy and Fintech: With over 120 million mobile broadband users and one of the youngest populations globally (more than 60% under the age of 30), Pakistan offers significant upside in tech, e-commerce, and fintech. Government reforms and new digital banking licenses are paving the way for scalable digital financial services.
4. Agro-Tech and Manufacturing: Pakistan’s large arable land and textile base provide potential for investment in high-efficiency agriculture, warehousing, and value-added export manufacturing.

Pakistan’s demographic dividend, a rapidly expanding, increasingly educated youth base is taking shape. With structural investments in literacy, digital skills, entrepreneurship, and vocational training, the country is building a resilient, globally competitive talent pipeline. The current trajectory points toward an empowered workforce ready to drive innovation and inclusive growth.

With over 240 million citizens and a youth led workforce of 63% under the age of 30 Pakistan stands at an inflection point. Nearly 62 million are between 15 and 29, and annually around 2 million embark on their careers, bolstering one of the world’s top 10 largest labour forces, which now numbers approximately 71.8 million 

National youth literacy (ages 15–24) stands at 72%, with urban centres outperforming rural ones (84% vs. 65%) Men’s literacy is higher (79%) compared to women (65%), signifying progress yet highlighting opportunity for further growth

Enrollment rates reflect societal transformation: 67.6% primary, 43.8% secondary, and nearly 15% post-secondary participation. Annually, Pakistan produces over 445,000 university graduates and 25,000–30,000 computer science/IT graduates 

Punjab, the most populous province has seen continued improvement in literacy, rising to 66.3% in 2021, up from 20.7% in 1972 

The National Vocational & Technical Training Commission (NAVTTC) and the Prime Minister’s Youth Skill Development Programme have enrolled over 56,000 youth across IT, industrial, and technical trades

The Prime Minister’s Youth Programme (“Kamyab Jawan”), with a budget of PKR 150 billion, has provided loans, training, and distributed over 600,000 laptops to meritorious students nationwide

Pakistan now ranks among the top 10 global freelancing nations, has generated roughly USD 563.5 million in startup funding, and sees a boom in National Incubation Centres fostering youth-led tech innovation.

Pakistan’s trajectory on women’s empowerment is encouraging. Rising literacy and school enrollment, practical vocational training programs, significant microfinance support, legal protections, and digital inclusion reforms all signal real momentum. While challenges remain, continued multi-sector efforts are opening pathways for Pakistani women to thrive, lead, and contribute to national progress.

Pakistan has made notable improvements in female literacy over recent decades. Female literacy has risen from around 35.4% in 2001 to 49.6% by 2024, and girls’ primary school enrollment increased to 84.4% in 2021 from 67% in 2012.  In urban areas, even more striking progress is apparent, urban female literacy exceeds 87%, showing that access to education is improving rapidly.

Women’s labour force participation initiatives are gaining traction. Community-based programs, such as Karachi’s Roshni Baji, have successfully trained 200 female electricians, empowering women to enter a male-dominated industry. Over 800,000 households have been served to date, with female apprentices gaining employment and independence.

Institutions like Kashf Foundation, have disbursed over PKR 202 billion in microloans to women entrepreneurs, positively affecting more than 5

million women. This macro-level investment is building a robust ecosystem for women-led small businesses.

Digital access is rapidly improving. While only 51% of women own mobile phones and 21% use mobile internet, digital literacy initiatives are underway. Government programs like “ICT for Girls” and broader digital skill training are bridging this gap, empowering women to work remotely, launch online businesses, and access e-learning.

Women are increasingly visible in governance and activism. Female representation in the national legislature stands at around 20%, supported by reserved seats. Grassroots leaders like Fatima Lodhi—founder of the “Dark Is Divine” movement—and athletes like Noorena Shams and cricket legend Sana Mir (ICC Hall of Fame inductee in June 2025) are reshaping societal attitudes and inspiring the next generation .