The recent increase in Saudi Arabia’s investment pledge to $2.8 billion following Prime Minister Shehbaz Sharif’s visit highlights both opportunities and persistent challenges in attracting foreign investment. Despite signing 27 MoUs worth $2.2 billion last month, the actual inflow of investments remains limited.

One major issue is the gap between pledges and actual investments. While Gulf nations initially committed $75 billion over five years, only a fraction has materialized, such as Emirati investments in Karachi’s port infrastructure and Saudi acquisitions in the oil sector. This discrepancy underscores the need for credible and actionable agreements.

Moreover, the lack of interest from Gulf investors in key sectors like aviation and state-owned enterprises, despite government outreach, reveals deeper structural problems. The recent withdrawal of bidders for Pakistan International Airlines further illustrates these challenges.

Policy inconsistency and economic instability also deter investors. Without stable policies, transparent governance, and improved infrastructure, Pakistan cannot attract or sustain substantial foreign investments. Addressing these issues is critical to building investor confidence and achieving sustainable economic growth.

HUZAIFA TALIB KHETY,

Karachi.