Pakistan experienced a 7% increase in Foreign Direct Investment (FDI) in July 2025, with $208 million received compared to $195 million in July 2024, according to data from the State Bank of Pakistan (SBP). This growth represents a year-over-year increase of $13.4 million.
FDI inflows in July were $317 million, while outflows totaled $109 million. The previous fiscal year, FY25, saw a notable 110% rise in FDI, totaling $2.457 billion, with Chinese investments playing a key role.
Analysts predict that the positive momentum observed in FY25 will continue into the current fiscal year, as improving economic indicators boost investor confidence.
Pakistan’s two Eurobonds, worth $1.8 billion, are set to mature this year, offering potential for issuing fresh bonds, with the country’s bonds currently trading at a premium.
Meanwhile, Foreign Portfolio Investment (FPI) faced an outflow of $34 million in July 2025, a shift from the $23.6 million in inflows recorded during July 2024. Net foreign investment dropped by 55%, reaching $163.5 million, compared to $363 million in the same period last year.
China remains the largest investor in Pakistan, contributing $51 million in July, followed by Canada at $36 million and Switzerland at $21 million.
