Foreign Direct Investment in Pakistan rises 17% in FY24

Foreign Direct Investment (FDI) in Pakistan increased by 17% to $1.9 billion in the fiscal year 2024, according to the latest figures from the State Bank of Pakistan. 

This increase from the previous year’s $1.62 billion comes despite the country having one of the lowest FDI amounts in developing economies.

The SBP data shows that June alone accounted for $168.7 million of the FDI, an improvement from $122.4 million in the same month last year.

Chinese investments continued to dominate, contributing $568 million, although this was a decrease from $692 million in FY23. 

Hong Kong followed as the second-largest investor, increasing its FDI to $358.5 million from $250 million previously.

Other notable investments included $268 million from the United Kingdom, $137 million from the United States, and $100 million from Singapore.

By sector, the power industry received the most foreign investment, although it decreased slightly to $799.9 million from $898.5 million in FY23. 

The oil and gas exploration sector saw a rise in FDI, jumping to $303.6 million from $137 million a year earlier. However, the financial sector experienced a decline in investment, drawing $208 million compared to $276 million in the previous fiscal year.

Additionally, the mining and quarrying sector marked a turnaround with $103 million in inflows, a notable recovery from a net outflow of $220 million in FY23.