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Wednesday, December 18, 2024  
15 Jumada Al-Akhirah 1446  

Pakistan’s foreign direct investment surpasses $1b for five months of FY25: SBP Report

Total FDI inflows for the period were recorded at $1.625 billion
Rolled Euro banknotes are placed on dollar banknotes in this illustration taken on May 26, 2020. Reuters
Rolled Euro banknotes are placed on dollar banknotes in this illustration taken on May 26, 2020. Reuters

Pakistan’s Foreign Direct Investment (FDI) has exceeded the $1 billion milestone during the first five months of the current fiscal year (FY25), according to a recent report by the State Bank of Pakistan (SBP). This growth signals renewed investor confidence and a more stable economic environment.

The SBP reported a remarkable 31% increase in FDI, with inflows reaching $1.124 billion from July to November FY25, up from $856 million during the same period last year. This represents an increase of $268 million. Total FDI inflows for the period were recorded at $1.625 billion, while outflows amounted to $502 million.

Chinese investments played a pivotal role in this surge, making China the largest contributor to FDI in Pakistan. During the July-November FY25 period, China invested $469 million, a significant rise from $293 million in the previous fiscal year. Hong Kong and the United Kingdom followed, contributing $116 million and $113 million, respectively.

The month of November 2024 saw a continued positive trend, with FDI growing by 27 percent month-on-month. Pakistan received $219 million in FDI in November 2024, compared to $172 million in November 2023.

However, while FDI has flourished, portfolio investment has faced challenges, experiencing a staggering 505 percent decline during the same period. Portfolio investment recorded a negative $156 million in July-November FY25, a stark contrast to the $38.6 million investment in the previous year.

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Foreign Direct Investment increased by 15% in August

Overall, total foreign investment in Pakistan, which includes FDI, portfolio investment, and foreign public investment, saw a growth of 42.2 percent, increasing by $377.5 million to reach $1.272 billion in the first five months of FY25 compared to $895 million in FY24.

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