2024 Investment Climate Statements: Pakistan (US Department of State)Pakistan’s economy remains fragile with weak macroeconomic indicators, hindered by a dependence on imports, low rates of foreign direct investment (FDI), and long-standing difficulties attracting FDI. The business community cites persistently high inflation, red tape, weak rule-of-law, corruption, political uncertainty, and security concerns as among the difficulties of doing business in Pakistan. Pakistan came close to defaulting on its external financing obligations in June 2023 after failing to meet the requirements of its IMF Extended Fund Facility. The Pakistani government and IMF subsequently agreed to a nine- month (July 2023-April 2024) $3 billion Stand-By Arrangement (SBA) to relieve the immediate economic crisis. Fiscal stability, economic growth, and attracting foreign investment were and continue to be top priorities for Pakistan’s caretaker government (August 2023-January 2024) and current elected government, which took office in February 2024. The government successfully completed the IMF SBA in April 2024.