China leads FDI in Pakistan with net inflow of $79m in May

June, 17 2026 (MLN): China emerged as the largest investor in Pakistan in May 2026, with a net direct investment of $79.3m, followed by the U.A.E and Hongkong which invested $50.5m and $27.1m respectively,according to the data issued by the State Bank of Pakistan (SBP).

During 11MFY26, China remained the largest investor, followed by Hong Kong and the United Kingdom with net FDI of $819m, $308.4m, and $224.6m respectively.

It is pertinent to note that the total FDI in 11MFY26 stood at $1.62bn ($1,623.3m), down 28.40% YoY compared to a net FDI of $2.27bn ($2,267.3m) in 11MFY25.

China held the majority proportion (50.45%) of direct investments in the country during 11MFY26; however, investment from the country has declined by 29.12% YoY when compared with the figure of $1.16bn ($1,155.4m) in 11MFY25.

Hong Kong’s contribution to net FDI stood at $308.4m (19.00%) in 11MFY26, down by 28.08% YoY compared to $428.8m in the Same Period Last Year (SPLY).

The third major investor during 11MFY26 was the United Kingdom, whose share was 13.84% with a direct investment of $224.6m, growing significantly by 268.80% YoY compared to $60.9m in 11MFY25

The Foreign Portfolio Investment (FPI), which represents an investment in the equity market (both direct and indirect) during May stood at positive $231.7m.

The Luxembourg emerged as the biggest portfolio investor during the month, as it invested $3.4m during the month.

The total foreign investment in the review month clocked in at $445.9m.

On a cumulative basis, within 11MFY26, total foreign investment was reported at $477.6m as compared to foreign investment of $1.56bn ($1,562.3m) incurred in the corresponding period last year.

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