ISLAMABAD: Pakistan recorded net Foreign Direct Investment of $748 million during the first four months of FY2025-26. The figure shows a 26 percent decline from the $1,011 million received in the same period last year. Officials noted that the fall reflects lower investor activity across several sectors. They added that the overall external environment remains challenging for emerging markets.
However, the trend improved slightly in October 2025. Pakistan received FDI inflows of $179 million during the month. The figure shows a 23 percent rise from inflows of $146 million recorded in October 2024. Analysts said the increase signals renewed interest from key partner countries.
Outflows fall sharply during October
FDI outflows dropped significantly during the month under review. Total outflows stood at $139 million in October 2025. The amount reflects a 28 percent decline from $193 million recorded in the same month last year. Economists view the drop in outflows as a stabilizing factor for net investment figures.
China emerges as top investment source
China remained the single largest contributor to FDI inflows in October 2025. Pakistan received $38 million from China during the period. The UAE followed with inflows of $36 million. Switzerland contributed $17 million, while Hong Kong sent $24 million. Officials said the diversity of sources highlights Pakistan’s expanding investment partnerships.
Financial sector leads FDI inflows
The Financial Business sector attracted the highest foreign investment during October 2025. The sector recorded inflows of $80 million. The power sector followed with $53 million in investments. The personal services sector received $10 million. Market observers said the data shows steady confidence in financial and energy segments.
Overall, the government continues efforts to attract long-term investment. Policymakers plan new incentives to support capital inflows and improve investor sentiment.
