China leads FDI in Pakistan with net inflow of around $69m in August

September 18, 2025 (MLN): China emerged as the largest investor in Pakistan in August 2025, with a net direct investment of $68.6m, followed by Hong Kong and Switzerland, which invested $30.1m and $17.2m respectively, according to the data issued by the State Bank of Pakistan (SBP).

During 2MFY26, China remained the largest investor, followed by Hongkong and Switzerland with net FDI of $120m, $60.1m, and $37.8m ,respectively.

It is pertinent to note that the total FDI in 2MFY26 stood at $364.3m, down 22.01% YoY compared to FDI of $467.1m in 2MFY25.

China held the majority proportion (32.94%) of direct investments in the country during 2MFY26, however, investment from the respective country has declined substantially by 52.7% YoY when compared with the figure of $253.7m in 2MFY25.

Hongkong’s contribution in net FDI stood at $60.1m (16.5%) in the 2MFY26, down by 28.96% YoY compared to $84.6m in SPLY.

The third major investor during 2MFY26, Switzerland’s share was 10.38% with a direct investment of $37.8m, growing by 7.69% YoY.

Other major important investors were the U.A.E, United Kingdom and Canada with a net FDI of $32.9m, $31.8m, and $22.1m, respectively, during 2MFY26.

The Foreign Portfolio Investment (FPI), which represents an investment in the equity market (both direct and indirect) during August, stood at a negative $42m.

On a cumulative basis, FPI showed a divestment of $86.6m during 2MFY26, against an investment of $102.9m in the SPLY.

Ireland emerged as the biggest portfolio investor during the month, as it invested $4.4m during the month and $3.5m during 2MFY26.

The total foreign investment in the review month clocked in at $114.2m.

On a cumulative basis, within 2MFY26, total foreign investment was reported at $277.7m as compared to foreign investment of $570m incurred in the corresponding period last year.

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