| Karachi: Foreign Direct Investment (FDI) in Pakistan continued its upward momentum, recording an impressive 56% growth during the first seven months of the current fiscal year (FY25).
According to data released by the State Bank of Pakistan (SBP), the country attracted FDI inflows of $1.523 billion between July and January FY25, compared to $976 million in the same period of FY24. This marks a significant increase of $548 million, reflecting growing investor confidence in Pakistan’s economic potential.
Total FDI inflows during this period stood at $2.122 billion, while outflows were recorded at $599 million, resulting in a strong net inflow. This positive trend indicates a recovery in foreign investments despite global economic uncertainties.
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In January 2025, FDI witnessed a sharp turnaround, with $194 million in inflows, a notable improvement from the $132.3 million outflow recorded in January 2024. This reversal highlights renewed interest from international investors.
While FDI performed strongly, portfolio investments recorded a net outflow of $232 million during July–January FY25, despite an improved stock market performance.
Overall, total foreign investment, which includes FDI, portfolio investment, and foreign public investment, grew by 25.6% year-on-year, reaching $1.346 billion in the first seven months of FY25, compared to $1.072 billion in the same period of FY24.
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Analysts believe this surge in FDI reflects growing investor confidence in Pakistan’s economic reforms and investment-friendly policies, positioning the country as a more attractive destination for global capital. |
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