China leads FDI in Pakistan with net inflow of $72.6m in January

February 17, 2026 (MLN): China emerged as the largest investor in Pakistan in January 2026, with net direct investment of $72.61 million, followed by Hong Kong and Switzerland, which invested $24.66 million and $17.46 million, respectively, according to data issued by the State Bank of Pakistan (SBP).

During 7MFY25, China remained the largest investor, followed by Hong Kong and the UAE, with net FDI of $495.52 million, $188.43 million, and $126.25 million, respectively.

Total FDI during 7MFY25 stood at $981.36 million, down 40.91% year-on-year compared with $1.66 billion recorded in 7MFY24.

China accounted for the largest share of direct investment (50.49%) during 7MFY25; however, inflows from the country declined significantly by 42.19% YoY from $857.13 million in 7MFY24.

Hong Kong’s contribution to net FDI totaled $188.43 million (19.2%) in 7MFY25, down 35.18% YoY from $290.69 million in the same period last year (SPLY).

The UAE ranked as the third-largest investor during 7MFY25, with a 12.86% share and direct investment of $126.25 million, reflecting a decline of 28.95% YoY.

Other notable investors included Switzerland, “Others,” and the United Kingdom, with net FDI of $124.23 million, $86.15 million, and $64.39 million, respectively, during 7MFY25.

Foreign Portfolio Investment (FPI), which represents investment in the equity market (both direct and indirect), recorded a net inflow of $136.72 million in January.

On a cumulative basis, however, FPI showed a net divestment of $463.92 million during 7MFY25, compared with a divestment of $176.99 million in the same period last year.

The “Others” category emerged as the largest portfolio investor during the month, with inflows of $11.14 million in January and $10.4 million during 7MFY25.

Total foreign investment during the review month stood at $310 million.

Cumulatively, total foreign investment during 7MFY25 amounted to $517.43 million, significantly lower than $1.48 billion recorded in the corresponding period last year.

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