FDI drops to $1.78bn in July-April

KARACHI: Pakistan’s net foreign direct investment (FDI) fell 3.0 per cent to $1.785 billion in the first 10 months of the current fiscal year, the central bank data showed on Friday.

The country witnessed an FDI inflow of $141 million in April, representing a 64 per cent decline compared to the same month last year. However, these investments showed a significant increase of 447 per cent compared to the previous month.

China continued to be the leading source of FDI, with investments from the mainland rising by 39 per cent year-on-year to $711 million from July to April in FY25. This accounted for 40 per cent of the total FDI inflows. “Sector-wise, the bulk of investment was directed toward the power sector ($547 million) and financial services ($601 million), indicating ongoing investment in energy-related projects,” said Saad Hanif, head of research at Ismail Iqbal Securities. “Manufacturing and construction also saw improved inflows, while the information and communication sector faced net outflows of $75 million, reflecting divestment. Monthly FDI remained volatile, though Apr-25 posted a slight recovery to $141 million after hitting a low of $26 million in March,” Hanif added.