Pakistan ranks at the bottom of the Global Investment Risk and Resilience Index
Pakistan, along with Haiti and Lebanon, have been ranked at the bottom of the global investment resilience index. Switzerland, Denmark and Norway are the top three names in the new Global Investment Risk and Resilience Index, developed by citizenship advisory firm Henley & Partners with AI-powered analytics platform AlphaGeo.
Dr Christian H Kaelin, Chairman at Henley & Partners, said, “This index is a new, useful tool in understanding where true sovereign risks and resilience lie. For investors, companies, and global citizens, it offers unprecedented clarity on where to place confidence and capital in the years ahead.”
The list combines risk exposure and resilience capacity into a single score to identify the countries best placed to preserve wealth and generate long-term value. This would help investors, businesses, and families build a better global risk profile to thrive amid uncertainty, as well as provide governments with a benchmark to measure competitiveness.
Dr Parag Khanna, Founder and CEO of AlphaGeo, explained that high risk is not always negative if matched by strong resilience. “Adaptation is the new imperative. The societies most committed to building resilience – through innovation, governance, and climate preparedness – will attract investment, talent, and long-term growth,” he said.
Dr Tim Klatte, a partner at Grant Thornton China, says the index shows that resilience, not sheer size or wealth, determines a nation's ability to safeguard prosperity. He adds that fragile states face the double burden of high risks and low resilience. Without stronger governance and diversification, these states remain stuck in cycles of vulnerability. Emerging markets like India and Nigeria hold immense potential. However, until they address governance and inequality, their risks will continue to overshadow opportunities.
THE MOST FRAGILE STATES
Sierra Leone (146), Nigeria (147), Pakistan (148), Haiti (149), and Lebanon (150) sit at the bottom of the index. The report stated that these countries face significant political instability and considerable legal and regulatory risks, which contribute to their high-risk profiles.
In addition to governance challenges, they experience limited innovation and economic complexity. Low levels of social development further reduce their resilience. These factors reflect entrenched instability and minimal capacity to adapt to changing conditions.
THE TOP COHORT
Leading the list is Switzerland (1), which has exceptional low risk, and world-leading innovation, governance, and social metrics, followed by the Nordic countries of Denmark (2), Norway (3), and Sweden (5) exemplifying equitable growth, robust institutions, and forward-looking social policy. On the 4th spot is Singapore, with the lowest legal and regulatory risk globally.
G7 AND BRICS NATIONS
G7:The G7 countries fare well with the nations standing out for their stability and for balancing relatively low risk with strong resilience. Germany leads the group on the 9th spot, driven by climate readiness, economic complexity, and innovation, followed by Canada (11), the UK (19), France (23), the US (24), Japan (27), and Italy (36).
BRICS: When it comes to the BRICS nations, they exhibit moderate resilience. Heading the group is China (37), which is categorised as a favourable investment destination with moderate risk, and has investment capacity and innovation strength. Then there is Russia (69) that faces a precarious position but classified as high resilience. It is also high risk, driven by political instability and regulatory uncertainty.
South Africa (95), Brazil (99), and India (104), exhibit moderate resilience weakened by elevated risks. “Each face an uncertain political as well as legal and regulatory environment, with India’s substantial exposure to physical climate hazards further exacerbating its overall risk profile,” the report added.
BEYOND THE TOP 10
Canada (11) is classified as very low risk due to relatively subdued inflation, stable currency performance, and minimal physical climate risk. Austria's (12) resilience is driven by its social progress, climate resilience, and economic complexity. Estonia (13) and Ireland (15) stand out for their robust governance and social progress.
New Zealand (16) sets a global benchmark for governance and regulatory quality. South Korea (20) shows world-class adaptive capacity, with strengths in economic complexity and innovation. Czechia (14) and Slovenia (18) are noted as prime European markets, characterised by their economic sophistication and complexity.
