Pakistan sees 57% surge in Foreign Direct Investment in August

Net inflows of Foreign Direct Investment (FDI) in Pakistan surged in August compared to the previous month, highlighting a positive trend in the country's investment landscape.

Data released by the central bank showed Pakistan recorded a net FDI inflow of $214 million in August, a 57% increase from the $136 million net inflow in July.

During the first two months of fiscal year 2024-25, net FDI inflows surged by 56% reaching $350 million compared to $225 million in the same period last year.

China emerged as the largest investor in Pakistan in August, contributing a substantial $129.62 million in net direct investment. Meanwhile, Hong Kong and the United Kingdom invested $27.73 million and $21.24 million, respectively.

For the first two months of FY25, China maintained its position as the top investor with a net FDI of $174.69 million, accounting for 49.9% of total direct investments in the country. This represents a remarkable 202.8% increase from the $57.69 million invested in the same period last year.

Hong Kong and the United Kingdom followed, with net FDI contributions of $70.18 million and $43.51 million, respectively, during July-August. Hong Kong's investment increased by 21.65% compared to the same period last year, while the UK's investment rose by 10.7%.

Other notable investors included the United States, France, and various other countries, with net FDI contributions of $22.73 million, $13.45 million, and $10.33 million, respectively, during FY25's first two months.

However, the Foreign Portfolio Investment (FPI), which includes both direct and indirect equity market investments, showed negative $65.8 million in August. Despite this, cumulative FPI for July-August stood at $102.89 million, a significant increase from $26.75 million in the same period last year.

Overall, total foreign investment in August amounted to $148.16 million. On a cumulative basis, total foreign investment for July-August reached $453.15 million, compared to $251.96 million in the corresponding period last year.