KARACHI: Pakistan’s Foreign Direct Investment (FDI) dropped sharply by 43 percent in the first half of the current fiscal year (FY26), the State Bank of Pakistan (SBP) reported on Monday.
According to the SBP, the country received FDI worth USD 808 million during July-December FY26, compared to USD 1.425 billion in the same period of the previous fiscal year (FY25), reflecting a decline of USD 616 million. During the period under review, FDI inflows were USD 1.813 billion as against outflows of USD 1 billion.
Monthly basis, the country also witnessed FDI outflows of USD 134.7 million in December 2025, versus investment of USD 182.4 million in December 2024.
Analysts noted that the significant net outflow in December came largely from Norway’s telecom sector, primarily due to Telenor’s exit from Pakistan after selling its assets to PTCL, which accounted for the majority of this month’s outflows.
READ MORE: Jul-Nov FDI down 25% to roughly $1billion YoY
Sector wise data showed that Pakistan’s power sector, which accounts for the largest share of total FDI, declined sharply to USD 470.9 million during July-December FY26, down from USD 780.1 million in the same period last year.
On a positive note, FDI in the financial sector showed growth, rising to USD 401.5 million in the first half of FY26 from USD 368.2 million in the same period last year, highlighting investor interest in banking and financial services despite overall declines in other sectors.
Meanwhile, the telecommunications sector recorded substantial outflows of USD 431.3 million in the first half of FY26, compared to just USD 64.8 million in the corresponding period of the previous year, reflecting the impact of major divestments.
Foreign investment in the Food sector also surged to USD 50 million during July-Dec of FY26 up from USD 18 million in the same period of last fiscal year.
In addition, despite improve performance of equity market, portfolio investment recorded USD 225 million in the first half of FY26.
Total Foreign Investment in the country, including FDI, portfolio investment and public private investment stood at USD 207 million in the first half of this fiscal year compared to USD 1.343 billion in the corresponding period of last fiscal year.
Copyright Business Recorder, 2026