FDI rises to $350m in two months

KARACHI: Foreign direct investment (FDI) inflows to Pakistan rose 56 percent year-on-year to $350 million in the first two months (July-August) of fiscal year 2025, the central bank data showed on Wednesday.

FDI increased to $214 million in August from $142 million a year ago.

China accounted for the bulk (50 percent) of foreign direct investment inflows into the country. According to SBP data, in July-August, the amount invested by Chinese companies rose by 207 percent to $175 million. Compared to the same period last year, direct investments from Hong Kong stayed flat at $70 million in July-August FY25. Moreover, Pakistan received $44 million in foreign direct investment (FDI) from the United Kingdom, unchanged from the same period last year.

The power sector saw the largest FDI inflows, with $210 million in FDI received in July-August FY25, up 95 percent from the same period last year. FDI into the oil and gas exploration industry reached $44 million, a 33 percent increase from the year before. FDI in the financial businesses amounted to $39 million in July-August FY25, up 48 percent from a year ago.