KARACHI: Foreign Direct Investment (FDI) into Pakistan rose by 7 percent in the first month of this fiscal year (FY26).
According to State Bank of Pakistan (SBP) Pakistan received FDI amounting to $208 million during July 2025 as against $195 million in July 2024, showing an increase of $13.4 million. During the period under review, FDI inflows were $317 million as against $109 million outflows. In the previous fiscal year (FY25), Pakistan attracted $2.457 billion in FDI, posting a remarkable growth of 110 percent, largely supported by Chinese inflows.
Jul-Mar FDI up 14pc to $1.644bn YoY
Analysts said the growth momentum witnessed in the previous year is expected to continue during the current fiscal year. “With improving economic indicators, foreign investment in the country is gradually rising as investor confidence strengthens,” they said.
Pakistan’s two Eurobonds, worth $1.8 billion, are set to mature this year, providing a cushion for the issuance of fresh bonds. In addition, Pakistan’s bonds are currently trading at a premium, reflecting improved economic fundamentals, they mentioned.
Foreign Portfolio Investment (FPI) witnessed an outflow of $34 million in July 2025 compared to $23.6 million inflows in July 2024.
The net foreign investment in the country decreased by 55 percent or $200 million to $163.5 million in the first month of this fiscal year as against $363 million in the same month of previous fiscal year.
The country wise analysis revealed that China is the largest investing country with some $51 million in July 2025 followed by Canada $36 million and $21 million by Switzerland.
Copyright Business Recorder, 2025
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