Karachi: Pakistan has witnessed a significant 31.3% surge in foreign direct investment (FDI) during the first five months (July–November) of the fiscal year 2024-25, reflecting growing investor confidence in the country’s economic prospects.
According to data released by the State Bank of Pakistan (SBP) on December 17, 2024, net FDI rose to $1.12 billion during the period, compared to $856 million in the corresponding months of the previous fiscal year. This substantial increase in FDI highlights Pakistan’s improving appeal as an investment destination.
The data shows that inflows under FDI reached $1.63 billion during July–November FY25, up from $1.09 billion during the same period last fiscal year. However, outflows under FDI also rose, reaching $502 million in the first five months of FY25, compared to $234 million during the same period in FY24.
While FDI showed robust growth, portfolio investments reflected a contrasting trend. Under the portfolio investment category, the country experienced a net outflow of $156.3 million in the first five months of FY25, a reversal from the net inflow of $36.6 million recorded during the same period last year. Despite this, total net foreign investment in Pakistan—including FDI and portfolio investments—rose by 8.1%, reaching $967 million during July–November FY25, compared to $894.5 million in the same period of FY24.
Foreign public portfolio investment also contributed positively, with inflows amounting to $305 million during the first five months of FY25. This reflects continued interest from foreign investors in government securities and public projects.
In November 2024 alone, FDI inflows stood at $219.2 million, marking an improvement from $172.4 million in November 2023. The month-on-month increase underscores steady progress in attracting foreign capital.
The increase in FDI is a positive indicator for Pakistan’s economy, which has been striving to improve its external account and attract sustainable foreign investments. Analysts suggest that favorable policies, improved macroeconomic indicators, and government efforts to facilitate investors are likely contributing to this upward trend.