Karachi, February 18, 2025 – The net inflow of Foreign Direct Investment (FDI) into Pakistan surged by over 56% during the first seven months (July – January) of the current fiscal year 2024-25, as reported by the State Bank of Pakistan (SBP) on Tuesday.
This remarkable increase in foreign investment highlights growing investor confidence in the country’s economic prospects.
The SBP stated that foreign direct investment rose to $1.52 billion during the first seven months of the current fiscal year, compared with $976 million in the same months of the previous fiscal year. This increase indicates a positive trend in the inflow of foreign capital, driven by improved business conditions and policy reforms.
The inflow under foreign direct investment has been recorded at $2.12 billion during the first seven months of the current fiscal year, as compared with $1.59 billion in the corresponding months of the previous fiscal year. This growth underscores the rising interest of international investors in Pakistan’s diverse sectors.
Meanwhile, the outflow under foreign direct investment was recorded at $599 million during July – January of 2024-25, compared with $617 million in the same period of the last fiscal year. The reduced outflow suggests greater investor retention and confidence in Pakistan’s market.
However, portfolio investment in the capital markets recorded a significant outflow of $232 million during the first seven months of the current fiscal year, compared with an inflow of $37 million in the corresponding months of the previous fiscal year. This decline indicates the volatile nature of portfolio investments compared to direct investments.
This brings the total foreign private investment to $1.29 billion during the first seven months of the current fiscal year, compared with $1.01 billion in the corresponding months of the previous fiscal year, showing an increase of 27.6%. The increase in private investment reflects improved economic policies and greater investor participation.
According to SBP data, foreign direct investment has been gradually increasing, reaching $2.35 billion in the fiscal year 2023-24 from the preceding fiscal year’s $1.63 billion. Financial market experts are optimistic that foreign investment in the current fiscal year will surpass the previous year’s mark, driven by improved business confidence and ongoing economic reforms.