Pakistan’s foreign direct investment declined 41 percent year on year during the first seven months of FY2025-26, even as inflows turned positive in January 2026.
According to State Bank of Pakistan data compiled by Topline securities, net FDI stood at $981 million in 7MFY26, down from $1,661 million in the same period last year.
On a monthly basis, however, investment showed improvement. Net FDI rose to $173 million in January 2026, compared to a net outflow of $135 million in December 2025.
The latest data indicates a recovery in inflows after a weak December, although overall foreign investment remains under pressure on a yearly basis. Total foreign investment also increased to $310 million in January, up 120 percent compared to $141 million in January last year.
China, Hong Kong, and Switzerland were the largest contributors to FDI during the month, while the power sector and financial businesses attracted the highest share of investment.
Analysts note that foreign investment flows have remained volatile, reflecting broader economic conditions. Topline Securities expects total FDI for FY2025-26 to reach around $2.5 billion if the recovery trend continues.