KARACHI, April 16, 2026 — Foreign direct investment (FDI) in Pakistan surged 163% year-on-year in March 2026, signaling a short-term rebound in investor activity, though broader inflows remained subdued during the fiscal year, data from the State Bank of Pakistan (SBP) showed on Thursday.
According to the SBP, FDI rose to $168 million in March, compared with $64 million in the same month last year, reflecting renewed interest in select sectors despite global economic uncertainties.
However, cumulative FDI during the first nine months (July–March) of the fiscal year 2025-26 declined to $1.35 billion, down from $1.86 billion recorded in the corresponding period of the previous fiscal year.
The data also highlighted continued pressure on portfolio investment, with an outflow of $185 million in March 2026, significantly higher than the $15 million outflow recorded a year earlier. For the July–March period, portfolio investment outflows widened to $550 million, compared with $269 million in the same period last year.
Overall foreign private investment recorded a net outflow of $17 million in March, compared with an inflow of $48 million a year earlier. For the nine-month period, total private foreign investment fell sharply to $804 million from $1.54 billion.
Meanwhile, foreign public investment also saw increased outflows, particularly from debt securities, which recorded an outflow of $268 million in March. Total public investment outflows reached $393 million during July–March, compared with $80 million in the same period last year.
As a result, net foreign investment declined to $411 million in the current fiscal year, down from $1.51 billion a year earlier.
Analysts said the mixed trend reflects cautious investor sentiment amid global volatility, with FDI showing resilience while portfolio flows remain under pressure.