Pakistan’s foreign direct investment (FDI) stood at $156.2 million in August 2025, a significant decline from $272.4 million recorded in the same period last year, according to the latest data from the State Bank of Pakistan (SBP).
On a month-on-month basis, the country saw an investment of $385 million in July 2025. Cumulatively, for the first two months of FY26, Pakistan attracted FDI of $364.3 million, down 22.01% compared to $467.1 million during the same period last year.
In August, direct investments accounted for $242.8 million, marking a 36.62% year-on-year drop, while outflows decreased by 21.68% to $86.7 million. Foreign portfolio investment (FPI) saw a negative $42 million in August, with cumulative divestment of $86.6 million during 2MFY26.
China was the largest investor in Pakistan in August 2025, with a net direct investment of $68.6 million, followed by Hong Kong and Switzerland, which invested $30.1 million and $17.2 million, respectively. Cumulatively in 2MFY26, China contributed $120 million to FDI, while Hong Kong and Switzerland invested $60.1 million and $37.8 million, respectively.
Despite remaining the largest investor, China’s FDI in 2MFY26 declined by 52.7% compared to last year. Hong Kong’s FDI also dropped by 28.96%, while Switzerland saw a 7.69% increase in its investment.
Other significant investors included the UAE, United Kingdom, and Canada, with net FDI of $32.9 million, $31.8 million, and $22.1 million, respectively, during 2MFY26.
The total foreign investment in August 2025 amounted to $114.2 million, down from $206.6 million in the same month last year.
