KARACHI: Foreign Direct Investment (FDI) into Pakistan declined by 25 percent during the first five months of the current fiscal year (FY26).
According to the State Bank of Pakistan (SBP), FDI stood at USD 927.4 million in July to November of FY26, down from USD 1.242 billion in the same period last year, reflecting a fall of USD 315 million.
In November 2025 alone, net FDI dropped 16 percent to USD 180 million compared with USD 214 million in November 2024.
Foreign Portfolio Investment and Foreign Public Investment also remained negative during the period, recording net outflows of USD 192 million and USD 422 million, respectively.
FDI drops 26% to $748m in first four months of FY26
As a result, total foreign investment in the country plunged 77 percent to USD 314 million in the first five months of the current fiscal year, compared with USD 1.391 billion in the corresponding period of FY25.
Sector-wise, the power sector attracted the highest FDI at USD 384 million, followed by financial services with USD 327.6 million and electrical machinery with USD 58 million.
Analysts said Pakistan needs concrete and sustained policy measures to attract higher FDI, warning that weak inflows could further strain the economy at a time when external financing needs remain high.
Copyright Business Recorder, 2025
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