Investment Facilitation for Development Agreement (IFDA): Significance and Opportunities for Pakistan

The Investment Facilitation for Development Agreement (IFDA) holds significant potential for enhancing Pakistan’s investment climate and attracting greater Foreign Direct Investment (FDI). This agreement, encompassing nearly 130 WTO members, seeks to simplify administrative procedures, strengthen anti-corruption measures, and promote responsible business conduct, making Pakistan a more attractive destination for foreign direct investment (FDI). This paper explores Pakistan’s current export diversification, the role of the IFDA, and the country’s broader economic implications. The IFDA presents substantial opportunities for Pakistan to enhance its investment climate and attract more FDI, driving economic growth and development. The country must manage the implementation challenges carefully and ensure that the benefits are widely distributed to maximise the IFDA’s positive impact. Pakistan can leverage the IFDA to achieve significant economic progress and contribute to its long-term sustainable development goals by focusing on regulatory reforms, capacity building, and inclusive growth strategies.