Pakistan’s Net Foreign Direct Investment (FDI) surged by 41 per cent in the first eight months of the ongoing fiscal year (FY25), reaching $1.618 billion, according to the State Bank of Pakistan (SBP) on Monday.
Between July and February of FY25, FDI inflows stood at $2.29 billion, while outflows were recorded at $677.3 million. In comparison, the same period last year saw net FDI at $1.147 billion.
However, in February 2025 alone, net FDI dropped to $94.7 million, marking a 45 per cent decline from $172 million recorded in the same month the previous year. This also represented a sharp 51 per cent fall from the $194.4 million registered in January.
Chinese investment showed remarkable growth during these months, jumping by nearly 285 per cent. China retained its position as the largest investor in Pakistan, contributing 41 per cent of the total FDI with $661.8 million, compared to $171.9 million in the same period last year.
The UK followed as the second-largest investor, with a 5 per cent rise in net FDI, totalling $167 million compared to $159.4 million last year. The UK’s investments accounted for 10 per cent of Pakistan’s total FDI during this period.
Sector-wise, the power industry remained the top destination for foreign investments, attracting 36 per cent of the total FDI with $578.2 million. The financial services sector came in next with $466.4 million, followed by the oil and gas exploration industry, which drew $196.6 million.
This growth in FDI comes at a crucial time, as Pakistan continues to operate under the International Monetary Fund (IMF)’s Extended Fund Facility (EFF) programme.
Meanwhile, Pakistan’s current account (C/A) recorded a $12 million deficit in February 2025, a stark contrast to the $71 million surplus in the same month last year, as per data released by the SBP. However, the country’s C/A deficit improved month-on-month, recovering from a revised deficit of $399 million in January.
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