BII Says Pakistan Needs Consistent Policies To Attract Long-Term Investment
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✧ GENERATE BRIEFING
British International Investment (BII), the UK’s development finance institution, has characterized Pakistan’s recent macroeconomic stabilization as encouraging while emphasizing that long-term capital mobilization hinges on consistent policies and structural reforms. In an interview with Business Recorder, BII Head of Pakistan Imtiaz Saithna noted that while GDP growth reached 3.7% in FY2025–26, sustained economic momentum requires a predictable regulatory framework, transparent contractual enforcement, and improved ease of doing business. BII formerly CDC Group maintains a portfolio of nearly $360 million across 38 Pakistani businesses, prioritizing climate finance, financial inclusion, and venture capital. Highlighted portfolio deployments and strategic focus areas include: SME & Microfinance Access: A $15 million risk-sharing facility with the Pakistan Microfinance Investment Company (PMIC) to unlock up to $30 million in liquidity for underserved borr$50 million committed to Bank Alfalah for climate resilience and $75 million to HBL, alongside direct equity/debt support for Mega Motors to advance domestic electric vehicle (EV) manufacturing.owers.
British International Investment (BII), the United Kingdom’s development finance institution, has described Pakistan’s recent economic stabilisation as encouraging but stressed that continued reforms and consistent policies are essential to attract more long-term investment.
Imtiaz Saithna, BII’s head of Pakistan, told Business Recorder that improvements in macroeconomic stability could strengthen investor confidence. Pakistan’s economy grew by 3.7% in fiscal year 2025-26, although sustaining that recovery will require policy continuity and further structural reforms.
BII, formerly known as CDC Group, has invested in Pakistan since 1987. Its current portfolio in the country is valued at nearly $360 million across 38 businesses, reflecting its focus on long-term investment in developing markets. The institution concentrates on climate finance, financial inclusion and venture capital.
Prerequisites for Capital Mobilisation
Saithna said Pakistan needed to maintain macroeconomic stability, improve the ease of doing business, strengthen institutions and provide a predictable regulatory environment. Investors also require clear rules, efficient markets and transparent legal and contractual arrangements before committing long-term capital.
He identified limited access to finance as a major constraint on economic development, particularly for small and medium-sized enterprises (SMEs), farmers, women entrepreneurs and underserved communities. BII works through local financial institutions and investment platforms to channel funding towards businesses and producers that struggle to access conventional financing.
Targeted Sectoral Investments and Climate Finance
As part of this approach, BII has committed $15 million to a risk-sharing facility with Pakistan Microfinance Investment Company (PMIC). The arrangement is designed to support up to $30 million in additional lending through PMIC’s portfolio, expanding access to formal financial services for underserved borrowers.
The institution has also invested $50 million in Bank Alfalah for climate finance and provided a $75 million facility to HBL. These investments are intended to support climate resilience, food security and sustainable finance. BII has additionally invested in Mega Motors to support electric vehicle manufacturing in Pakistan.
Renewable Energy and Grid Modernisation
Renewable energy remains another important part of its portfolio. BII-backed projects in Pakistan provide more than 460 megawatts of clean-energy capacity, including the 100MW Atlas Solar project and the 50MW Zephyr Wind Farm. Saithna also highlighted the need to improve electricity transmission and distribution infrastructure to support the country’s energy sector.
Looking ahead, Saithna said Pakistan had opportunities to attract more long-term capital into productive sectors as economic conditions stabilise. However, he emphasised that consistent policies, a stronger business environment and better access to finance would be critical to turning investor interest into actual investment.
