China remained Pakistan’s largest foreign investor during FY26 despite an overall decline in foreign direct investment. The latest State Bank of Pakistan data showed China contributed $862 million in net direct investment. Moreover, the country accounted for more than half of Pakistan’s total FDI.
China Retains Top Position Despite Annual Decline
China recorded a 52.66 percent share of Pakistan’s total direct investment during FY26. However, its investment declined 28.45 percent from $1.2 billion in FY25.
Hong Kong ranked second with net direct investment of $339.4 million. Meanwhile, the United Arab Emirates secured third place by investing $235.9 million.
Hong Kong’s investment fell 27.79 percent compared to the previous fiscal year. Similarly, investment from the UAE declined 19.84 percent year-on-year.
Other major investors included Switzerland, the United Kingdom, and several other countries. They contributed $204.7 million, $131.9 million, and $116.2 million, respectively.
Overall Foreign Investment Falls In FY26
Pakistan received total foreign direct investment of $1.64 billion during FY26. However, this represented a 33.93 percent decline from $2.48 billion recorded in FY25.
In June 2026, China remained the leading investor with $43 million in net direct investment. Hong Kong followed with $31 million, while the United Kingdom invested $18.4 million.
Meanwhile, foreign portfolio investment posted a cumulative divestment of $1.19 billion during FY26. This exceeded the $730.8 million divestment recorded during the previous fiscal year.
In June alone, foreign portfolio investment stood at negative $40.5 million. However, the category labeled “Others” emerged as the largest portfolio investor, contributing $121.6 million during FY26 and $5.4 million in June.
Overall, Pakistan recorded total foreign investment of $450.6 million during FY26. By comparison, the country attracted $1.75 billion during the corresponding period last year. Total foreign investment reached $27 million in June.
