KARACHI: Foreign Direct Investment (FDI) into Pakistan rose by 14 percent during the first nine months of this fiscal year (FY25).
According to the State Bank of Pakistan (SBP), the country fetched FDI amounting to $1.644 billion in July-March of FY25 compared to $1.442 billion in the same period of last fiscal year (FY24), showing an increase of $202 million. During the period under review, FDI inflows were $2.472 billion as against $828 million outflow.
Economists said that this upward trend in FDI reflects growing investor confidence in the country’s economy, supported by macroeconomic stability and ongoing progress by the IMF.
Jul-Feb FDI clocks in at $1.6bn, up 41% YoY
However, they emphasized that sustaining this momentum requires consistent policies and stable governance, as frequent regulatory changes and political uncertainty continue to erode investor trust.
The SBP reported that the FDI saw a sharp decline of 91 percent on a month-on-month basis. In March 2025, the country received a net FDI inflow of $25.7 million, compared with $294.2 million in March 2024.
The major chunk of FDI arrived from China, which has 41 percent share in overall FDI received this fiscal year. FDI from China surged by 107 percent to $684.5 million in July-March FY25 from $330.3 million in the same period of last fiscal year. Investments from Hong Kong also increased to $175.9 million in July-March FY25, compared with $153.8 million in the same period last year.
Sector wise analysis revealed that strong inflows into the financial services sector, reaching $518.4 million during the first nine months of this fiscal year, up from $464.8 million in FY24, have been a key driver of the overall FDI increase. The power sector also saw significant growth, attracting $500 million in foreign investment compared to $342.5 million in the previous year.
Copyright Business Recorder, 2025
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