KARACHI: Foreign Direct Investment (FDI) dropped sharply 28.4 percent during the first eleven months of this fiscal year (FY26).
According to State Bank of Pakistan (SBP) Pakistan fetched FDI amounted to USD1.623 billion in July-May FY26 compared to USD 2.267 billion in same period of last fiscal year (FY25), showing a decline of USD 644 million.
Monthly, FDI decreased by 8 percent to clocked in at USD 214.3 million in May 2026 down from USD 232 million.
Portfolio investment during the eleven months of this fiscal year declined by USD 566 million due to uncertainty in the equity market followed by US-Iran conflict.
READ MORE: Jul-Apr FDI slumps 31pc to USD1.409bn YoY
Sector-wise data shows that the power sector accounted for the largest share of overall FDI, attracting USD 871.4 million during July–May FY26. However, this reflects a 20 percent decline compared to USD 1.091 billion in the same period last year.
FDI in the financial services sector increased to USD 718.5 million during July-May FY26, up from USD 646.4 million in the same period of FY25.
Total foreign investment, including FDI, foreign portfolio investment, and foreign public investment, declined by 69 percent, falling to USD 478 million during July-May of the current fiscal year from USD 1.562 billion in the same period of FY25.
Copyright Business Recorder, 2026
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