Pakistan recorded a sharp decline in foreign direct investment (FDI) in March 2025, with net inflows falling to just $25.75 million — down a staggering 91% compared to $294.17 million in the same month last year, according to data released by the State Bank of Pakistan (SBP).
The decline is also steep on a month-on-month basis, with FDI dropping from $385 million in February 2025.
Despite the dismal performance in March, cumulative FDI for the first nine months of FY25 stood at $1.64 billion, marking a 14% year-on-year increase from $1.44 billion in the same period of the previous fiscal year. However, the March figures cast a shadow over what had otherwise been a relatively stable inflow trend during FY25.
The breakdown of March’s direct investment shows that while inflows amounted to $176.55 million, this figure represented a 49% YoY decline. Meanwhile, outflows surged to $150.8 million — a massive 200% increase compared to March 2024 — significantly eroding net FDI.
Foreign private investment also declined sharply. In March 2025, net private investment stood at just $10.43 million, a dramatic drop from $312.8 million a year earlier.
In portfolio investments, equity securities saw an outflow of $15.32 million, reversing the $18.63 million inflow recorded in March 2024. Additionally, public portfolio investments recorded a substantial outflow of $116.08 million during the month.
As a result, the overall foreign investment in March 2025 registered a net divestment of $105.65 million — a stark contrast to the net investment of $347.33 million recorded in the same month last year.
On a cumulative basis, total foreign investment during the first nine months of FY25 amounted to $1.3 billion, down sharply from $1.61 billion in 9MFY24.
The data reflects heightened investor caution amid ongoing macroeconomic and political uncertainty in Pakistan, as well as global risk aversion toward emerging markets.
