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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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.
