Investment Diplomacy & Public Policy Specialist Muhammad Azfar Ahsan briefed Pakistan’s Minister for Finance & Revenue, Senator Muhammad Aurangzeb, on GLOBAL CONNECT, a flagship initiative aimed at unlocking investment opportunities, enhancing economic collaboration, and strengthening Pakistan’s international partnerships.
During the meeting, the Finance Minister appreciated the initiative and assured his full support, along with complete facilitation from the Ministry of Finance. He acknowledged GLOBAL CONNECT’s potential to contribute meaningfully to Pakistan’s economic and investment landscape.
Headquartered in Islamabad, GLOBAL CONNECT has established a strategic presence across major global markets, including the Middle East (Riyadh, Abu Dhabi); Central Asia (Tashkent, Astana); Africa (Cairo, Nairobi); China (Beijing, Hong Kong); the Americas (Washington, New York, Toronto); Turkey (Istanbul); and the United Kingdom (London). This extensive global footprint enables strong connectivity between businesses, institutions, academia, and key economic and commercial hubs worldwide.
As a forward-looking and action-oriented platform, GLOBAL CONNECT brings together policymakers, senior corporate leaders, academia, and global investors to foster economic cooperation, spotlight high-potential sectors, and promote long-term, meaningful partnerships across regions. The initiative aims to serve as a credible bridge between Pakistan and the international community, facilitating investment, trade, knowledge exchange, and sustained economic growth.
Funny how he has backed so many things and none have been successful.
I quote – Claims from Kamran Khan (via Nukta)
From his recent articles/videos:
In his piece “Pakistan has carved out a stronger global profile … but its economy continues to wrestle with deep‑rooted weaknesses,” Kamran Khan identifies four major “headaches” holding back Pakistan’s economy: weak tax reforms, loss‑making state‑owned enterprises (SOEs), collapsing foreign investment (FDI), and sluggish GDP growth.
Nukta
+1
On FDI specifically: he notes that in the last fiscal year, Pakistan received US$ 2.45 billion in gross FDI; but after accounting for portfolio outflows (bonds/stocks), net FDI inflows were only about US$ 1.8 billion. Nearly half of that came from China, showing heavy concentration in limited investors/countries.
Nukta
+1
He argues that compared to other emerging economies (which often see 11–13% annual growth in FDI), this level of FDI is very low, indicating structural problems in Pakistan’s investment environment (e.g. regulatory uncertainty, bureaucratic red tape, poor governance).
Nukta
+1
Regarding SOEs: Khan points out that by December 2024, “just 15 national corporations” — including major institutions like railways, steel mills, power‑distribution firms — had accumulated losses amounting to PKR 5.89 trillion, which he equates to about 5% of GDP.
Nukta
On governance and corruption: Referring to a recent International Monetary Fund (IMF) report reviewed by Nukta, Khan mentions that the IMF estimates Pakistan loses 5–6.5% of GDP annually due to corruption and poor governance. That translates to roughly US$ 20 billion per year (given Pakistan’s approximate $400 billion economy).
Nukta
The IMF/World Bank diagnostic (as interpreted by Khan) reportedly lists 15 priority areas and 92 reforms needed to address structural weaknesses in governance, tax system, procurement, audit‑oversight, and state‑enterprise reforms.
Nukta
On taxation: in a very recent Nukta article, Khan argues that high corporate taxes and a punitive “super‑tax” discourage both domestic and foreign investment, especially in manufacturing and export‑oriented sectors. He quotes officials (from SIFC leadership) acknowledging that inconsistent policies are a major barrier to investment.
Nukta
He is skeptical of the effectiveness of SIFC’s mandate (launched mid‑2023) to act as a “one-window, one-stop” for investment — noting that despite that, FDI remains stalled at low levels, and private-sector manufacturing investments have sharply fallen over recent years.
Nukta
+1
In summary: Kamran Khan paints a bleak but detailed picture — Pakistan has potential, but systemic failures in taxation, governance, state enterprises, and policy consistency are eroding that potential.
🧭 Pro‑Pakistani Commentary: What This Means — and What Pakistan Must Do
From a perspective that wishes to see Pakistan succeed — with realism but optimism — here are some thoughts and what I believe needs to be done:
✅ Acknowledge the problems — they are real & serious
The fact that net FDI is only ≈ US$ 1.8 bn (with heavy concentration from one country) is a clear red flag. For a country of over 240 million people and huge potential, this is insufficient. This low foreign investment inflow stalls industrial growth, technology transfer, job creation, and long‑term competitiveness.
The immense losses in SOEs (PKR 5.89 trillion) and the recurring drain on treasury show that the status quo is unsustainable. Continuing to subsidize underperforming enterprises is bad for fiscal health and crowds out productive investment.
Corruption and weak governance — as highlighted by the IMF report — are not minor; if 5–6.5% of GDP is lost annually, that’s a massive inefficiency and drain on national resources. This undermines not just growth, but social trust, investor confidence, and the rule of law.
High and inconsistent taxation, plus frequent shifts in policy regimes, make investing risky. Investors (foreign or domestic) shy away when policies change unpredictably — undermining long-term planning and capital formation.
🌟 But Pakistan still has huge potential — and reform is possible
If Pakistan can commit to structural reform — transparently and with consistency — it can turn things around. Consider:
The size of the workforce (large young population) and natural resources — if properly leveraged — provide a competitive advantage.
If SOEs are restructured (privatized or corporatized), fiscal resources can be freed up for infrastructure, education, industry, or incentives for private/foreign investors.
A fair, simple, and transparent tax system — along with modern digital tax administration — would increase revenue without overburdening honest taxpayers, and bring more businesses into the formal economy, enabling long-term growth.
Political and regulatory stability, plus clear rules for foreign investment (with confidence in enforcement), could attract diversified FDI — not just from a single country but multiple sources, and across sectors (manufacturing, IT, export‑oriented industries).
🇵🇰 What patriots and policymakers should focus on now
Demand full transparency and accountability: publish regular public reports on FDI inflows, sectors invested, performance of facilitated projects (especially under SIFC).
Push for genuine privatization or restructuring of loss-making SOEs — not just announcements. This would send a strong signal that Pakistan is serious about reform.
Reform tax laws: simplify, broaden the base, unify indirect/direct taxation, reduce opportunities for exemptions, and digitize tax administration — to minimize evasion and corruption.
Ensure consistent, stable, long-term policies for investors: predictable regulatory environment, fair enforcement, and protection for both local and foreign investors.
Strengthen governance and institutional checks & balances: improve audit, procurement oversight, judicial independence, to rebuild trust — essential for sustainable growth.
🎯 Conclusion — A Cautious but Hopeful Outlook
Yes — the picture painted by Kamran Khan (and backed by the IMF‑diagnosed structural problems) is sobering. Pakistan right now is wrestling with serious headwinds: low FDI, weak tax systems, inefficient SOEs, poor governance.
But this doesn’t mean we should lose hope. On the contrary: these challenges are exactly why Pakistan has a historic opportunity — if it uses this moment to commit to real reforms. A transparent, predictable, pro‑investor, and corruption‑free Pakistan can attract meaningful domestic and foreign investment, rebuild industries, generate jobs, and improve the quality of life for millions.
From a “pro‑Pakistani” vantage point: recognizing the problems honestly doesn’t make you pessimistic — it makes you realistic. And realism is the first step toward reform, recovery, and long‑term national progress.