Pakistan records 7% rise in July FDI

foreign investment

KARACHI – Pakistan has registered a 7% year-on-year (YoY) increase in foreign direct investment (FDI) during July 2025, according to the latest figures released by the State Bank of Pakistan (SBP) on Tuesday.

As per SBP data, Pakistan received FDI worth $208 million in July 2025 compared to $195 million in July 2024, marking an additional inflow of $13.4 million. During the review period, inflows stood at $317 million while outflows amounted to $109 million. This follows the previous fiscal year (FY25), in which Pakistan secured $2.457 billion in FDI, reflecting a strong growth of 110 percent, mainly fueled by robust Chinese investments.

Economic experts believe the positive trend is likely to continue into FY26 as macroeconomic indicators improve. They pointed out that Pakistan’s stronger foreign reserves, a stable exchange rate, and progress on reforms are gradually restoring investor trust. The maturity of two Eurobonds worth $1.8 billion this year also provides the government space to issue new bonds. Moreover, the fact that Pakistan’s existing bonds are trading at a premium signals growing confidence among global investors.

However, not all investment flows were favorable. Foreign Portfolio Investment (FPI) saw an outflow of $34 million in July 2025, compared to $23.6 million inflows in July 2024. Consequently, net foreign investment dropped by 55 percent, declining to $163.5 million from $363 million in the same period last year.

Country-wise, China remained the top investor with $51 million, followed by Canada with $36 million, and Switzerland contributing $21 million.