Foreign direct investment soars 31% to $1.124 billion

Pakistan's net foreign direct investment (FDI) increased by 31% to $1.124 billion in the first five months of the current fiscal year, indicating a growing interest among foreign investors in the country.

The State Bank of Pakistan (SBP) reported a net FDI inflow of $219 million in November, reflecting a 27% increase compared to the same period last year.

The data showed a 65% month-on-month increase, with a surge of $133 million recorded in October of the current fiscal year.

According to the SBP, Chinese companies accounted for 60% of FDI, with an investment of $469 million from July to November in FY25, followed by Hong Kong, whose investment rose to 44%, reaching $116 million.

The United Kingdom contributed $113 million in FDI in FY25, an increase from $100 million in the same period of FY24.

In terms of sector-specific investment, the power division, a sector historically facing challenges in Pakistan, noted a 51% increase in FDI, amounting to $454 million compared to $249 million in the corresponding period of the previous fiscal year.

The financial sector attracted $249 million in FDI this year, up from $247 million the previous year, followed by the gas sector, which received $125 million during the same period, with an increase of 27%.