Jul-Jan FDI falls 51pc YoY

KARACHI: Foreign Direct Investment (FDI) in Pakistan fell sharply 51 percent during the first seven months of the current fiscal year (FY26).

According to the State Bank of Pakistan (SBP), net FDI stood at USD 694 million during July-January FY26, compared with USD 1.429 billion in the same period of FY25, marking a decline of USD 735 million.

During the period under review, total inflows amounted to USD 2.1 billion, while outflows reached USD 1.1 billion. On a month-on-month basis, FDI also fell significantly, dropping 51 percent to USD 111 million in January 2026 from USD 226 million in January 2025.

READ MORE: FDI plunges by 43.3% in July-December of current fiscal year

Meanwhile, portfolio investment showed a negative trend, recording a net outflow of USD 287 million during the first seven months of FY26, indicating continued volatility in foreign investment in domestic equity and debt markets.

Analysts note that global economic uncertainty and domestic macroeconomic adjustments are remain key factors influencing foreign investor sentiment toward Pakistan. They said that long term and investment friendly policies were required to fetched the foreign investment in the country.

Total foreign investment in the country, comprising foreign direct investment (FDI), portfolio investment, and foreign public investment, fell by 65 percent during July–January FY26. The inflows declined by USD 967 million to USD 517 million, compared with USD 1.484 billion recorded in the same period of the previous fiscal year.

Meanwhile, Pakistan has received inflows amounting to USD 11.923 billion till January under the Roshan Digital Account (RDA) since its launch in September 2020. In January 2026, the RDA inflows slightly increased and reached USD 216 million mark, up from USD 213 million in the previous month.

Copyright Business Recorder, 2026