Foreign direct investment (FDI) into Pakistan rose by 31.3% in the first five months of the current fiscal year, reaching $1.123 billion, compared to $856 million in the same period last year, according to data released by the State Bank of Pakistan (SBP).
In November, the country received a net FDI inflow of $219 million, up by 27% YoY from $172 million inflow during the same month last year. This figure also represents a 65% MoM increase over the $133 million received in October of this fiscal year.
While the surge appears encouraging, the total inflow remains modest given the government’s efforts to attract significant foreign investment.
On June 20, 2023, the government established the Special Investment Facilitation Council (SIFC) to streamline investment processes and accelerate project development. However, the council’s performance has yet to yield the expected results.
Experts attribute the limited inflow to persistent political uncertainty, which continues to deter potential foreign investors.
Country-wise data shows that China remained the largest investor during the July-November period, contributing $469 million compared to $293 million in the same period last year.
Investments from Hong Kong also increased, reaching $115.7 million from $80.3 million. The United Kingdom and Switzerland contributed $113 million and $66 million, respectively.
Sector-wise, the power sector saw a significant 51% increase, with FDI amounting to $454 million from July to November FY25.
The financial sector received $249 million in FDI during this period, a slight increase from $247 million a year earlier. FDI in the gas and exploration sector rose by 24%, reaching $125 million during the same period.
