During the creation process of the Sustainable Development Goals (SDGs), private sector investment was recognised as the key to achieving the SDGs by economists and policymakers, because private investment results in stimulating small businesses by creating demand for their services and products and results in creating more jobs. Furthermore, private sector investments are helpful in improving financial infrastructure necessary for small business holders. Unfortunately, in comparison to other countries of Asia, Pakistan’s performance record regarding attracting domestic and foreign investment is unsatisfactory. It makes the objective of financing the SDGs through the private sector even more difficult. 

Studies reveal that in majority of cases, private sector investments are made to earn profit. In case of investing in SDGs, the risks are high and returns are very limited. So the investors need some incentives that help in covering their risks. Hence, to promote investment in SDGs, policymakers need to give investors incentives that can offset their high costs by getting benefits from the government incentives. By giving incentives, using better regulatory frameworks, behavioural change and creating inclusive and sustainable markets, private investment decisions can be aligned with the SDGs.

The present study will attempt to analyse the nature of private sector investments and Foreign Direct Investment (FDI) in Pakistan as well as other countries of the region. It will try to explore the factors that motivate investors to invest in certain sectors of the economy by using the data of selected indicators for the period 1975-2017. The likely data sources will be World Development Indicators, Economic Survey of Pakistan and State Bank of Pakistan publications. Based on the review of policies adopted by other countries and empirical findings, the study will give policy recommendations to attract private investment and using it to cope with financing needs of SDGs in Pakistan. 

Author’s Note: These are the author’s personal views and do not reflect the viewpoint of his affiliated institution in any respect.