Pakistan eyes FDI momentum as global telecom operator expands investment Published on: October 7, 2026 10:51 AM

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has said Pakistan is witnessing renewed momentum in foreign direct investment as a global telecom operator VEON expanded its investment plan to $1.5 billion, driven by restored trust of local investors and privatization policy. Delivering a virtual keynote address at the National SDGs Investment Fair 2026 titled 'Investing in Pakistan's Sustainable Future,' organized by UNDP Pakistan in Karachi on Tuesday, the Finance Minister termed public-private partnership as the only mantra for sustainable growth. 'There is no better mechanism than public-private partnership,' he said, commending Sindh government for taking lead in the PPP model. He said Pakistan has achieved basic hygiene which is now being recognized at local and international level. 'We have the basic hygiene, which is being recognized at the local and international level. Building confidence among domestic investors is essential to attracting foreign investment,' he said. As evidence of growing foreign confidence, he announced that global telecom operator VEON has raised its planned investment in Pakistan over next three years to $1.5 billion from $1 billion. 'This is a significant jump,' he said, adding that the investment will expand connectivity, modernize infrastructure and accelerate digital innovation. He said Pakistan's economy which was experiencing contraction around three years ago is now projected to achieve 4% growth in current fiscal year, with focus on export-led sustainable growth and avoiding boom-and-bust cycles. He cited the $1.2 billion collective bid for privatization of Pakistan International Airlines as proof of domestic investors joining hands to form consortia. 'After local investment in PIA, now foreign investment is coming in DISCOs,' he said, revealing that three Turkish companies have expressed interest in the first power distribution company being offered for privatization. Highlighting capital market momentum, he said 11 Initial Public Offerings were completed at Pakistan Stock Exchange last fiscal year and 5 IPOs in last quarter – highest in two decades. Fashion retailer Khaadi is preparing for an IPO, while around 22 Real Estate Investment Trusts are expected to list over next couple of years. He said foreign exchange reserves reached a record $21.4 billion, Eurobonds attracted European and American blue-chip investors, and Green Bonds have been issued with IMF's Resilience and Sustainability Facility. Senator Sherry Rehman, in her virtual address, flagged population growth as the biggest threat to sustainability. She said 36 million children are out of school in the country, and there is a serious lack of financing and capacity to address social issues. She said the private sector has a critical role to fill this gap. She said matchmaking between companies, potential investors and the government is essential. 'If ESG is only about paperwork, it will never deliver the change Pakistan needs,' she added. Sherry Rehman said Pakistan is facing pressure from population growth and migration towards urban centers, which is increasing pressure on municipal governments. She said water supply and waste management have become major challenges in cities like Karachi, and sustainable, bankable projects are difficult to develop in changing circumstances. She stressed the need to combine resources and capacities through empowered local governments and public-private partnerships. Finance Minister Aurangzeb in his concluding remarks identified population growth and climate change as two major challenges and said capacity building and collaboration between federal and provincial governments and the private sector is imperative. He said talks with the IMF mission are progressing positively.