Flow of foreign investment into Pakistan saw a slight decline during FY25 despite a broader macroeconomic turnaround marked by a bullish stock market, a $1.9 billion current account surplus, and single-digit inflation—a rare convergence for the country in recent years.
According to the Pakistan Economic Survey 2024–25, foreign investment saw a slight decline with key sectors like financial services, power, and oil & gas continuing to attract inflows—though not enough to offset the overall dip in investment.
For the nine months of the fiscal year (9MFY25), the investment amounted to $1.2 billion, down from $1.9 billion in the same period last year.
Still, officials remain upbeat. “Investor confidence is rebuilding,” the report asserts, pointing to improvements in fiscal discipline, a stronger primary surplus, and foreign exchange reserves rising to $16.64 billion by end-May.
The economic survey also ties future optimism to ongoing support from international partners, including the IMF’s extended fund facility (EFF) and Green Sukuk initiatives, while highlighting the launch of the URAAN Pakistan Transformation Plan, a five-year strategy focusing on export promotion, digitalization, and climate resilience.
But risks persist. The report flags global headwinds—like geopolitical tensions, protectionist trade policies, and sluggish demand in key markets like the US, UK, and China—as potential spoilers for investment revival.
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