Pakistan sees 56% surge in foreign direct investment in 7 months

Net foreign direct investment (FDI) in Pakistan rose to $194 million in January, up from $170 million in December, according to official data.

In the first seven months of the fiscal year, net FDI inflow increased by 56% to $1.524 billion, compared to $976 million in the same period last year. China led with $634 million in investments, followed by Hong Kong with $155 million, and the United Kingdom with $148 million. Switzerland contributed $116 million.

The power sector attracted $551 million — a 298% increase from $139 million last year — accounting for 36% of total FDI. The financial sector, making up 27% of inflows, drew $414 million — an 18% rise.

Oil and gas exploration received $187 million, while the electronics sector saw a surge to $105 million compared with $14 million last year.

Other sectors receiving foreign investment included electrical machinery ($65 million), tobacco ($49 million), and food ($31 million).

Pakistan is taking steps to attract and retain capital through the Special Investment Facilitation Council (SIFC), focusing on key regional players such as Gulf countries, Turkey, and China.

The UAE recently committed to investing $10 billion across major sectors, while Saudi Arabia is expediting an initial $5 billion investment, primarily targeting the minerals sector, including Reko Diq.

These commitments underscore growing interest in Pakistan's economic potential, though the actual execution of these investments will determine their impact on FDI flows.