Archive · 21 Jan 2026
Investment Hurdles in Pakistan Due to Security and Governance Issues
Pakistan is having a hard time getting enough investment from inside and outside the country.
This is because of many problems like bad security, political fights, and too many rules that make it difficult to do business.
For example, it's very hard to open a bank account or get electricity connected.
Also, the courts are slow and have too many cases, which makes it hard for businesses to solve problems.
Because of all these issues, many people are scared to put their money into businesses in Pakistan.
This has been a problem for a long time, and it's getting worse.
Other countries like India are getting much more investment because they have fewer problems.
Pakistan struggles to attract domestic and foreign investment due to poor governance and security issues.
The country is ranked second on the Global Terrorism Index, deterring investors.
Political instability and lack of long-term vision further discourage investment.
Investment to GDP ratio has decreased from 17% in 1975 to 13.1% in 2024.
Bureaucratic hurdles, regulatory burdens, and a weak judicial system add to the challenges.
- Who
- Investors, both domestic and foreign, in Pakistan
- What
- Challenges in attracting investment due to security, governance, and bureaucratic issues
- When
- Current situation with historical context from 1975 to 2024
- Where
- Pakistan
- Why
- Poor governance, security risks, political uncertainty, and bureaucratic hurdles
- Global Terrorism Index Rank
- 2nd
- Investment to GDP Ratio (1975)
- 17%
- Investment to GDP Ratio (2024)
- 13.1%
- FDI in Pakistan (1992)
- $336.5 million
- FDI in India (1992)
- $276.5 million
- FDI in Pakistan (2024)
- $2.7 billion
- FDI in India (2024)
- $27.1 billion
- World Justice Project Rank (Judicial System)
- 129 out of 142
- Backlog of Cases in Courts
- 2.3 million