Net Foreign Direct Investment (FDI) in Pakistan grew by 20% during the first half of the current fiscal year (1HFY25), reaching $1.329 billion, as per the State Bank of Pakistan (SBP) report on Friday.
FDI Inflows and Outflows
During the period from July to December FY25, total FDI inflows amounted to $1,883.3 million, while outflows stood at $554.1 million.
Comparatively, in the same period of the previous year, net FDI was recorded at $1,107.9 million.
In December alone, net FDI stood at $170 million, reflecting a 33% decline compared to $252 million in December of the previous year.
On a month-on-month basis, FDI decreased by over 23% from $219 million in November.
Country-Wise FDI Performance
- China:
- China remained the largest source of FDI in Pakistan during 1HFY25, with an investment of $535.5 million.
- This represents a significant 48% increase from $361.5 million during the same period last year.
- China accounted for 40% of the total FDI in Pakistan.
- Hong Kong:
- Hong Kong ranked as the second-largest investor with a net FDI of $134.3 million, up 14% from $117.4 million during the same period last year.
- It contributed 10% to the total FDI.
- Power Sector:
- Attracted the largest share of investments with $488.4 million (37% of total FDI).
- Financial Business Sector:
- Received $353 million.
- Oil & Gas Exploration:
- Attracted $166.7 million.
The growth in FDI comes amid efforts by Pakistan to bolster its foreign exchange reserves through non-debt-creating inflows, addressing a persistent dollar shortage.
In December 2024, Pakistan’s current account posted a surplus of $582 million, compared to $279 million in December of the previous fiscal year, highlighting an improvement in the country’s external account position.
