FDI falls 33% to $1.19 billion in July–February FY26

Foreign direct investment into Pakistan declined by 33.4 percent to $1.194 billion during July–February FY26, while portfolio investment remained in negative territory, according to data released by the Finance Division.

Total foreign investment fell to $704.1 million in the first eight months of the fiscal year, compared to $1.582 billion in the same period last year. Portfolio investment recorded a net outflow of $490.8 million, widening from $211 million in the corresponding period of FY25.

Breakdown of portfolio flows shows net outflows of $365.6 million from the private sector and $125.2 million from the public sector.

Despite the decline in foreign inflows, domestic market indicators showed improvement. The stock market index increased by 24.6 percent, market capitalisation rose by 13.6 percent, and company incorporations grew by 26 percent during the period.

FDI inflows were mainly sourced from China, contributing $635.7 million, followed by Hong Kong with $219 million. Sector-wise, power attracted $627.4 million, while financial business received $523.2 million.

On a monthly basis, inflows improved in February 2026, reaching $213.5 million compared to $132.7 million in February last year.

Foreign exchange reserves stood at $21.7 billion as of March 19, 2026, including $16.4 billion held by the central bank.