Pakistan FDI rises 24% to USD 495 million in July-August

Pakistan’s net foreign direct investment rose 24% year over year to USD 495 million in the first two months of fiscal year 2026-27, supported by a sharp increase in August inflows, according to State Bank of Pakistan data released Wednesday.

FDI reached USD 316 million in August, up 80% from a year earlier and 77% from July.

The increase comes as Pakistan seeks to attract more foreign capital to support economic growth and strengthen external financing.

Power and financial business lead FDI inflows

Power and financial business recorded the highest FDI inflows during August, while China, Canada and the United Arab Emirates were the major net contributors by country, according to Topline Securities.

Financial business attracted USD 147 million during July-August, up from USD 113 million in the same period a year earlier.

The power sector, which has traditionally accounted for a large share of Pakistan’s FDI, received USD 145 million during the first two months of FY27, down from USD 157 million in the corresponding period last year.

Chinese and UAE investment increases

Net FDI from China rose to USD 176 million during July-August from USD 121 million in the same period a year earlier.

Investment from the UAE also increased, reaching USD 58 million during the first two months of FY27 compared with USD 35 million a year earlier.

The SBP publishes monthly foreign investment data by country and sector as part of its external-sector statistics.

Stronger inflows in August lifted cumulative FDI during the first two months of FY27 despite a year-over-year decline in investment in the power sector.