Pakistan foreign direct investment falls 22% to $180M in Nov

Foreign Direct Investment (FDI) in Pakistan continued to decline, falling 22.4% year-over-year in November to $180 million.

The data reflects the persistent difficulties in attracting foreign investors to Pakistan, where the cost of business remains high and bureaucratic red tape delays official approvals.

According to the State Bank of Pakistan data, the FDI inflow in November remained $270.4 million, with $90.7 million repatriated. As a result, the net FDI remained flat month-on-month, compared to $179 million in October.

The foreign portfolio investment (FPI) – foreign investment in the stock market – recorded a net outflow of $32.4 million, compared to a net inflow of $22.1 million in the same month last year. In October, FPI recorded an outflow of $160 million.

The Foreign Public Investment also recorded a net outflow of $42.8 million in November.

The overall foreign investment — a combination of FDI, portfolio flows, and public investment — plunged 87%, dropping to $104.4 million $194.9 million in the comparable period last year.

Power sector leads in FDI

During the first five months (July-November) of fiscal year 2026, the net FDI has totaled $ 927 million, down 25% year-over-year.

The largest contributors to the FDI in November were China ($81.6 million), Hong Kong ($23.3 million), Switzerland ($16.8 million), and the UAE (15.4 million).

In terms of sectors, the power sector attracted the highest investment with a net inflow of $86.8 million. It was followed by the financial businesses sector ($67.7 million) and electrical machinery ($13 million).

According the Topline Securities, the FDI in this fiscal year is estimated to be at $2.5bn.

Economists say the figures highlight Pakistan’s struggle to restore investor confidence. Steady foreign inflows, they argue, are critical for a cash-strapped economy working to stabilize its external account and rebuild foreign exchange reserves.