The report, compiled in collaboration with AlphaGeo, assesses a multitude of factors, including geopolitical and economic risks, climate threats, as well as adaptive capacities and resilience to crises. Pakistan is ranked slightly above countries such as South Sudan, Lebanon, Haiti, and Sudan, highlighting its current structural difficulties.
Experts emphasize that political instability and frequent leadership changes remain key factors undermining investor confidence. In recent years, Pakistan has experienced several changes in power, necessitating constant revisions of economic and legislative policies.
Difficulties in the legal and regulatory systems hinder business operations, creating numerous bureaucratic barriers for entrepreneurs. The country's economy largely depends on the textile and agricultural sectors; however, Pakistan is actively working on diversification and the development of new areas such as technology and innovation.
Climate risks remain a pressing issue: recent floods and droughts underscore the need for infrastructure modernization. At the same time, the government is taking steps to enhance readiness for climate change and create a sustainable urban and economic environment.
Social aspects show a growing interest in education and human capital development, as the country seeks opportunities to improve conditions for business and investment. Pakistan's geopolitical position remains an important factor, providing a strategic location in the region and opening new opportunities for trade and international cooperation.
Henley & Partners notes that the index results identify areas that require attention and systemic solutions, providing investors and policymakers with benchmarks for actions aimed at developing a sustainable economy.
The index confirms that Pakistan has the potential to improve its investment climate and increase investor confidence if efforts to enhance governance, economic development, and institutional resilience are continued.
