KARACHI: Foreign Direct Investment (FDI) in Pakistan maintained its upward trajectory, posting an impressive 56 per cent growth during the first seven months of the current fiscal year (FY25).
According to statistics released by the State Bank of Pakistan (SBP), the country attracted FDI inflows of $1.523 billion between July-January FY25, compared to $976 million in the same period of FY24, depicting a substantial increase of $548 million.
During this period, total FDI inflows stood at $2.122 billion, significantly outpacing outflows of $599 million. The net positive flow indicates a strong rebound in foreign investments despite global economic uncertainties.
1HFY25 FDI clocks in at $1.3bn, up 20% YoY
Analysts said that this massive surge in FDI reflecting investor confidence in the country’s economic prospects.
While FDI showed remarkable growth, portfolio investments experienced a downturn. The SBP reported a net outflow of $232 million in portfolio investments during July–January FY25, despite the improved performance of the equity market.
On a year-on-year basis, January 2025 saw a notable recovery in FDI, with a $194 million FDI compared to an outflow of $132.3 million recorded in January 2024. This reversal underscores renewed foreign interest in Pakistan’s economic potential.
Total foreign investment, which includes FDI, portfolio investment, and foreign public investment, registered a year-on-year increase of 25.6 per cent. It reached $1.346 billion during the July-January period of FY25, compared to $1.072 billion in the corresponding period of FY24.
Copyright Business Recorder, 2025
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