Pakistan’s FDI surges to $1.124 billion in first five months of FY25
Pakistan has crossed the $1 billion milestone in Foreign Direct Investment (FDI) during the first five months of FY25, marking a 31% increase from the same period last year, according to a report by the State Bank of Pakistan (SBP). This surge reflects renewed investor confidence and a stabilizing economic environment in the country.
From July to November FY25, FDI inflows reached $1.124 billion, compared to $856 million in the corresponding period of FY24, showing an increase of $268 million. Total FDI inflows during this period amounted to $1.625 billion, while outflows stood at $502 million.
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China emerged as the largest investor, contributing $469 million, a substantial rise from $293 million in the previous fiscal year. Other major contributors included Hong Kong and the United Kingdom, with investments of $116 million and $113 million, respectively.
The upward trend in FDI persisted into November 2024, with inflows of $219 million—27% higher than the $172 million recorded in November 2023. This growth underscores consistent international interest in Pakistan as an investment destination.
While FDI flourished, portfolio investment experienced a steep decline. During July-November FY25, portfolio investment dropped by 505%, registering a negative $156 million compared to $38.6 million in the previous year. The downturn reflects challenges in attracting short-term foreign investments.
Despite the challenges in portfolio investment, overall foreign investment in Pakistan, which includes FDI, portfolio investment, and foreign public investment, grew by 42.2%. Total foreign investment reached $1.272 billion in the first five months of FY25, up from $895 million in FY24, a rise of $377.5 million.
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