Foreign Direct Investment in Pakistan jumps 48% in Q1FY25

Pakistan attracted $771 million in Foreign Direct Investment (FDI)  in the first quarter of Fiscal Year 2024-25, according to data released by the State Bank of Pakistan. 

This number shows a 48% increase in FDI during the July-September period, up from $520 million during the same period last year. The surge in FDI also reflects a boost in investor confidence. 

China emerged as the predominant investor, contributing $404 million, which represents 52% of the total FDI received this quarter. This marks an increase from the $164 million recorded in the previous fiscal year. 

In September alone, FDI from China reached $244.8 million.

In contrast, other regions lagged significantly. FDI from Saudi Arabia was notably low at just $1.8 million for the quarter. Hong Kong’s contribution stood at $98 million, up from $67 million last year, while the United Kingdom and the United States invested $72 million and $28 million, respectively.

Investments from Arab countries were minimal, despite government efforts to lure more investors through the establishment of a Special Investment Facilitation Council aimed at providing optimal investment conditions.

The minimal FDI from Saudi Arabia, totaling only $1.8 million, and $25 million from the UAE, underscores this trend. 

Additionally, many Pakistani companies based in the UAE are reinvesting in Pakistan as foreign entities to capitalize on investment incentives and secure guarantees against potential risks.