KARACHI: Pakistan’s net foreign direct investment (FDI) increased by 20 per cent, reaching $1.329 billion in the first six months of this fiscal year, according to data from the State Bank of Pakistan (SBP) released on Friday.
In December, the country recorded a net FDI inflow of $170 million, reflecting a 33 per cent decline compared with the $252 million inflow during the same period last year. This figure also represents a 23 per cent decrease from the $219 million received in November of this fiscal year.
The SBP’s data indicates that a majority of direct investments came from China, with FDI from Chinese companies rising by 48 per cent to $436 million from July to December FY25. Investments from Hong Kong also grew by 14 per cent, reaching $134 million.
The United Kingdom contributed $130 million in FDI during the same period, compared with $118 million last year. In terms of sector-specific investments, the power sector saw a 26 per cent increase, with FDI amounting to $488 million from July to December FY25. The financial sector received $353 million in FDI during this period, a 17 per cent increase from $301 million a year earlier. FDI in the gas and exploration sector rose by 9.0 per cent, reaching $167 million during the same time.
Pakistan needs FDI inflows to support its external account. While the government continues to sign memorandums of understanding (MOUs), no major agreements have materialised yet. Last month, the federal cabinet approved the sale of a 15 per cent stake in the Reko Diq mining project to Saudi Arabia under an intergovernmental transaction agreement. This deal, valued at $540 million, will involve the transfer of shares in two instalments. In a related development, the Saudi Fund for Development has pledged an additional $150 million to support the mining sector in Balochistan. Analysts are hopeful that the execution of these deals will help increase FDI in the future.