Pakistan’s Foreign Direct Investment (FDI) has surpassed the $1 billion mark during the first five months of the current fiscal year (FY25), according to the State Bank of Pakistan (SBP). Total FDI inflows for the period amounted to $1.625 billion, reflecting a significant increase and signaling growing investor confidence in the country’s economic outlook.
The SBP report highlighted a remarkable 31% year-on-year increase in FDI, with inflows reaching $1.124 billion from July to November FY25, up from $856 million during the same period last year. This increase of $268 million indicates a positive shift in the investment climate.
China remained the largest contributor to FDI in Pakistan, investing $469 million during the first five months of FY25, compared to $293 million in the previous year. Hong Kong and the United Kingdom followed as significant investors, contributing $116 million and $113 million, respectively.
November 2024 also saw continued growth in FDI, with a 27% month-on-month increase, as Pakistan received $219 million in foreign investment, up from $172 million in November 2023.
However, while FDI showed strong growth, portfolio investment faced significant challenges. Portfolio investment recorded a dramatic 505% decline, falling to negative $156 million during the July-November FY25 period, compared to a positive $38.6 million in the same period last year.
Overall, total foreign investment in Pakistan, which includes FDI, portfolio investment, and foreign public investment, grew by 42.2%, rising by $377.5 million to reach $1.272 billion in the first five months of FY25, compared to $895 million in FY24.
