Pakistan’s trade and transit infrastructure (TTI) is in a relatively poor condition across roads, railways, ports, and border crossings. This is compounded by a persistent fiscal deficit, an inability to attract sufficient foreign direct investment (FDI) and local investment, and an ongoing economic slowdown. The country ranks 122 out of 139 countries on the Logistics Performance Index (2018), with critical weaknesses in customs procedures, infrastructure quality, and tracking systems. Capital flows globally have been heavily skewed toward energy and telecom, leaving trade and transit infrastructure severely underfunded — receiving only 4% of total sector investments. Within Pakistan, even viable TTI projects have struggled to attract private finance due to documentation gaps, weak regulatory frameworks, and an overarching bias toward energy-centric investments.
