China leads Pakistan’s FDI sources with $104m inflow in July

August 18, 2026 (MLN): China remained the largest source of foreign direct investment (FDI) into Pakistan in July 2026, with gross inflows of $104.0 million, according to data released by the State Bank of Pakistan (SBP).

After outflows of $40.8 million, China’s net FDI stood at $63.2 million, up 46.98% month-on-month (MoM) from $43.0 million in June 2026 and 22.01% year-on-year (YoY) from $51.8 million in July 2025.

Overall, Pakistan’s net FDI rose sharply by 264.49% MoM to $178.6 million in July 2026, compared with $49.0 million in June. However, net FDI remained 20.09% lower YoY than the $223.5 million recorded in July 2025.

China’s gross FDI inflows increased 12.80% MoM from $92.2 million in June and 16.46% YoY from $89.3 million in July 2025. The country’s stronger net FDI performance in July was supported by the higher inflows, despite substantial outflows during the month.

Canada emerged as the second-largest source of net FDI, recording gross inflows of $37.0 million with no reported outflows, resulting in net FDI of $37.0 million.

Canada’s net FDI increased 3.93% MoM from $35.6 million in June but declined 31.10% YoY from $53.7 million in July 2025.

The United Kingdom recorded gross inflows of $34.9 million and outflows of $19.0 million, leaving net FDI at $15.9 million.

The UK’s net FDI declined 13.59% MoM from $18.4 million but rose significantly by 76.67% YoY from $9.0 million.

Switzerland contributed gross inflows of $19.5 million and outflows of $2.7 million, resulting in net FDI of $16.8 million. Its net investment declined 3.45% MoM from $17.4 million and 18.05% YoY from $20.5 million.

The United Arab Emirates recorded gross inflows of $18.2 million against outflows of $8.0 million, bringing net FDI to $10.2 million. UAE-originated net investment fell 38.55% MoM from $16.6 million in June and 46.03% YoY from $18.9 million in July 2025.

The July data show that while China remained the dominant source of foreign investment, Pakistan’s overall FDI performance was weaker compared with a year earlier.

The sharp MoM rebound, however, reflects a significant improvement from the comparatively low net inflows recorded in June 2026.

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