ISLAMABAD
\nChina accounted for more than half of Pakistan\u2019s net foreign direct investment (FDI) in fiscal year 2025-26, reaffirming its position as the country\u2019s dominant investment partner despite an overall decline in foreign investment, according to a provisional data released by the State Bank of Pakistan (SBP).
\nThe analysis shows Pakistan attracted net FDI of $1.637 billion during FY 2025-26, down from $2.477 billion in the previous fiscal year. Of the total, China contributed $862 million, representing 52.7% of Pakistan\u2019s net FDI. Chinese gross inflows reached $1.198 billion, while outflows amounted to $336.3 million, China Economic Net (CEN) reported on Sunday.
\nThe figures underscore China\u2019s continued central role in Pakistan\u2019s investment landscape at a time when overall FDI slowed. Chinese investment alone exceeded the combined net inflows from several of Pakistan\u2019s other major foreign investors.
\nA similar trend emerged in June 2026. Pakistan recorded net FDI of just $13.5 million, as gross inflows of $294.4 million were largely offset by $280.9 million in outflows. China contributed $43 million in net FDI during the month, equivalent to about 318.5% of Pakistan\u2019s monthly net FDI.
\nThe share exceeded 100% because investment inflows from China offset net capital withdrawals from several other countries, significantly reducing Pakistan\u2019s overall monthly net FDI. The SBP data also indicate that Pakistan received gross FDI inflows of $3.568 billion during FY 2025-26, while outflows climbed to $1.931 billion, leaving net FDI at $1.637 billion.
\nOverall foreign investment, including portfolio investment, declined to $450.6 million as portfolio outflows continued throughout the fiscal year. Sector-wise, the data reveal that foreign investment remained heavily concentrated in a handful of industries.
\nThe power sector attracted $958.3 million in net FDI during FY2025-26, accounting for approximately 58.5% of Pakistan\u2019s total net FDI. The financial business sector ranked second with $805.5 million, followed by communications with $456.1 million and electronics with $66.9 million. Other sectors posting positive inflows included transport equipment ($57.6 million), textiles ($47.7 million), trade ($19 million), and tourism ($18.2 million).
\nMeanwhile, several sectors experienced net capital outflows, including mining and quarrying (-$116.8 million), food (-$102.1 million), cement (-$96.6 million), and construction (-$39.9 million), suggesting that foreign investor interest remained uneven across Pakistan\u2019s economy despite strong inflows into energy and financial services, CEN added. <\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD China accounted for more than half of Pakistan\u2019s net foreign direct investment (FDI) in fiscal year 2025-26, reaffirming its position as the country\u2019s dominant investment partner despite an overall decline in foreign investment, according to a provisional data released by the State Bank of Pakistan (SBP). The analysis shows Pakistan attracted net FDI of […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-557246","post","type-post","status-publish","format-standard","category-business"],"yoast_head":"\n