Pakistan trails regional peers in foreign investment as inflows reach $2.6 billion: UN

Pakistan received $2.6 billion in foreign direct investment (FDI) in 2024, a modest increase from $2.3 billion in 2023, but significantly behind its South Asian peers, according to the World Investment Report 2025 published by the United Nations Conference on Trade and Development (UNCTAD).

India remained the region’s top recipient with inflows of $28 billion, more than 10 times that of Pakistan. Bangladesh received $3.2 billion, while while Sri Lanka also posted an increase in FDI inflows and reached $761 million.

“Investment flows to Pakistan and Sri Lanka increased,” the report noted, highlighting Pakistan’s marginal gains in an otherwise competitive regional environment.

Globally, FDI flows dropped by 11% to $1.5 trillion in 2024, with developing countries receiving $867 billion.

In developing Asia, FDI declined slightly by 3%, but several countries including India, Vietnam, and the United Arab Emirates saw major inflow volumes.

The report emphasized the growing concentration of global investment, noting that just 10 developing countries accounted for three-quarters of all flows to the Global South. Pakistan remains outside that group.

UNCTAD warned of a negative outlook for 2025, with global investment constrained by financial volatility, trade tensions, and weakening investor sentiment.