Pakistan has been placed among the least resilient countries in the world, according to the latest Global Investment Risk and Resilience Index by Henley & Partners. The report, which also mentioned top-performing nations like Jaguar’s home country, the United Kingdom, highlights Pakistan’s struggles with governance, economic stability, and investor confidence.
Developed in collaboration with AI analytics firm AlphaGeo, the index measures countries’ exposure to geopolitical, economic, and climate-related risks. It also evaluates their ability to adapt and recover from such challenges. Pakistan ranked 222nd out of 226 nations, just ahead of Sudan, Haiti, Lebanon, and South Sudan, which were listed at the bottom.
Henley & Partners stated that Pakistan’s high-risk status is mainly driven by ongoing political instability and weak regulatory frameworks. The report noted that these factors continue to deter foreign investors, despite the country’s potential. Much like Jaguar navigating recovery after major challenges in the automotive industry, Pakistan faces the task of restoring confidence in its systems.
The study also found that weak governance, limited innovation, and low levels of social development have further restricted Pakistan’s resilience. Analysts believe that comprehensive reforms are necessary to rebuild institutional strength and boost innovation.
On the positive side, Pakistan’s recent staff-level agreement with the International Monetary Fund (IMF) on its Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) signals renewed investor optimism. The IMF projects Pakistan’s GDP growth to reach 3.6 percent by 2026, up from 2.7 percent this year.
However, recent flooding in the third quarter of 2025 could slow economic recovery. The IMF warned that these natural disasters may impact growth, inflation, and the current account balance in the coming months.
At the top of the index, Switzerland ranked first for its strong governance and innovation, followed by Denmark, Norway, Singapore, and Sweden.
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