Pakistan records $562 million in total foreign investment as stronger FDI and lower portfolio outflows improve the external investment position.
KARACHI, September 16, 2026: Pakistan’s total foreign investment surged by around 80% during the first two months of fiscal year 2026-27, driven primarily by stronger foreign direct investment (FDI) inflows and a sharp reduction in portfolio investment outflows.
According to data released by the State Bank of Pakistan (SBP) on Wednesday, total foreign investment in the private and public sectors rose to $562 million during July-August 2026, compared with $312 million during the corresponding period of the previous fiscal year.
Foreign private investment rises
Foreign private investment increased to $493 million during the first two months of FY2026-27, compared with $324 million during the same period of the previous fiscal year.
The increase was largely supported by higher FDI, which remained the main component of foreign private investment during the period.
FDI climbs to $494.5 million
Foreign direct investment (FDI) rose to $494.5 million during July-August 2026, compared with $399 million in the corresponding period of FY2025-26.
FDI inflows also recorded a substantial year-on-year increase in August 2026, reaching $316 million, compared with $175 million in August 2025.
The August figure represented an increase of more than 80% compared with the same month of the previous year.
Portfolio investment outflows fall sharply
Pakistan also recorded a significant improvement in portfolio investment during the first two months of FY2026-27.
The outflow under portfolio investment declined to $1.7 million during July-August 2026, compared with an outflow of $74.8 million during the corresponding period of the previous fiscal year.
The sharp reduction in portfolio investment outflows contributed to the improvement in the overall foreign investment position.
Foreign public investment turns positive
Foreign public investment also improved during the period.
The sector recorded an inflow of $69.4 million during the first two months of FY2026-27, compared with an outflow of $11.8 million during the same period of the previous fiscal year.
The shift from an outflow to an inflow further supported the overall increase in foreign investment during the opening months of the fiscal year.
Foreign investment position improves
The latest SBP data show a substantial improvement in Pakistan’s foreign investment position during July and August 2026.
Stronger FDI inflows, combined with the sharp reduction in portfolio investment outflows and improved foreign public investment, helped raise total foreign investment to $562 million, compared with $312 million a year earlier.
The figures indicate that foreign capital inflows strengthened during the early months of FY2026-27, although the overall investment trend will depend on the performance of FDI and other investment flows over the remainder of the fiscal year.