Foreign direct investment (FDI) in Pakistan declined by 31 per cent during the first 10 months of the current fiscal year, highlighting the country’s ongoing difficulty in attracting foreign investors. The situation worsened in April, when total FDI inflows amounted to only $54 million, sharply lower than the $179 million recorded in April last year.
Notably, Chinese investment alone exceeded the total net inflow for April, reaching $61 million. This occurred because several countries withdrew investments while others made fresh contributions during the month.
Overall, FDI inflows from July to April stood at $1.409 billion, compared to $2.035 billion in the same period of FY25.
China remained Pakistan’s largest investor, contributing $740 million during the 10-month period, although this was lower than the $1.04 billion invested in the corresponding period last year. Hong Kong invested $281 million, while Switzerland and the United Arab Emirates contributed $170 million and $169 million, respectively.
Norway recorded the largest outflow, withdrawing $365 million. Meanwhile, Pakistan’s power sector attracted the highest investment, receiving $785.6 million despite continued criticism of the industry in recent years.
