Pakistan’s Economic Turnaround: Why Global Confidence Is Rising Again

Pakistan’s economic outlook is showing clear signs of improvement. Inflation is down, the rupee is steady, and global investors are paying attention again. After years of uncertainty, the numbers now tell a story of stability, progress, and renewed trust.

The latest OICCI Perception and Investment Survey 2025 shows that 73% of multinational firms operating in Pakistan now recommend it as a viable destination for Foreign Direct Investment (FDI), up from 61% just two years ago. 

For overseas Pakistanis and global investors alike, this is more than a statistic. It signals a turning point where stability meets opportunity. And at One Homes, we are seeing that shift translate directly into growing confidence in Pakistan’s high-end real estate sector.

Confidence Is Back in the Numbers

The Overseas Investors Chamber of Commerce and Industry (OICCI) attributes this rise in confidence to a sharp improvement in economic indicators. Inflation, which reached almost 23.4% in FY24, dropped to only 4.7% by July 2025, while the rupee remained largely stable.

For investors, consistency is key. When prices stabilise and currencies hold their ground, long-term planning becomes easier. That’s exactly what has drawn multinational firms and overseas Pakistanis back into Pakistan’s investment landscape.

Global Rating Agencies Take Notice

This renewed confidence is being echoed abroad. Here’s how:

• In September 2025, S&P Global upgraded Pakistan’s credit rating to B-, highlighting better fiscal control and stronger reserves. 
• Fitch and Moody’s also revised their outlooks from “negative” to “stable,” pointing to an improved risk environment. 
• Even Barron’s, one of America’s top newspapers, called Pakistan’s economic rebound “a mini-miracle.” 
  
  

Such recognition from global institutions is more than symbolic. It reduces the cost of borrowing, boosts foreign trust, and sends a clear message that Pakistan is back on the radar for global capital.

Stock Market Mirrors the Optimism

The confidence is also reflected in capital markets. The Pakistan Stock Exchange (KSE-100) reached an all-time high of 169,988 points in October 2025, making it one of Asia’s best-performing indices this year. Analysts attribute the rally to improved liquidity, stable fiscal policy, and a noticeable increase in investor participation. 

Strong market performance is often the earliest signal of confidence returning, and for Pakistan, it shows how sentiment is steadily shifting from caution to conviction.

Markets move on trust, and the numbers show that trust is returning.

What It Means for Overseas Pakistanis

For overseas Pakistanis, this new wave of confidence represents both emotional and financial opportunity. A stable economy and improved global perception mean that investments, especially in real estate, carry stronger long-term value.

At One Homes, we believe this is the start of a new chapter. As Pakistan earns back global credibility, overseas Pakistanis are once again seeing home not just as a place of roots, but as a place of real growth.