Pakistan’s net foreign direct investment (FDI) fell sharply to just $14 million in June 2026, marking a 94 percent year-on-year (YoY) and month-on-month (MoM) decline, respectively, according to data released by the State Bank of Pakistan and compiled by Arif Habib Limited.
The slowdown capped a weaker year for foreign investment, with net FDI declining 34 percent YoY to $1.64 billion in FY26, compared to $2.48 billion in FY25.
Direct investment inflows stood at $294 million in June, down 6 percent YoY, while foreign investors repatriated $281 million during the month, 248 percent more than the $81 million recorded in May and up 168 percent YoY from June 2025.
As a result, net FDI fell to just $14 million.
For the full fiscal year, direct investment inflows totaled $3.57 billion, down 16 percent YoY from FY25, while outflows increased 8 percent YoY to $1.93 billion.
Total foreign investment, which includes both direct and portfolio investment, recorded a net outflow of $27 million in June compared with a net inflow of $446 million in May. During FY26, total foreign investment dropped 74 percent YoY to $451 million from $1.75 billion a year earlier.
Private investment recorded a net outflow of $595 million during FY26, while public investment posted net outflows of $591 million.
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