Foreign direct investment in Pakistan falls 34% to $1.64 billion in FY26
Net inflows dropped to $14 million in June, while power-sector investment declined and financial services attracted $805.5 million during the year.
Foreign direct investment in Pakistan fell 34% to $1.637 billion in FY2025-26 from a year earlier, according to State Bank of Pakistan data.
Net FDI stood at just $14 million in June, down 94% from both May 2026 and June 2025.
The monthly decline was mainly driven by net outflows from the food and electronics sectors, while inflows into power and financial services provided partial support, according to Topline Securities.
Country-wise, the United States recorded a net outflow of $165 million in June. China and Hong Kong remained among the main contributors to investment inflows during the month.
The power sector, which accounted for the largest share of total FDI, attracted $958.3 million during July-June FY2025-26, down from $1.178 billion in the preceding fiscal year.
The communication sector recorded net outflows of $456 million during the year, compared with outflows of $70 million in FY2024-25.
Investment in financial services, however, rose to $805.5 million from $702.6 million a year earlier.
The latest figures show that Pakistan continues to struggle to convert improving investor sentiment into large-scale capital inflows, remaining behind regional competitors in attracting foreign investment.
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