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

June, 17 2025 (MLN): China emerged as the largest investor in Pakistan in May 2025, with a net direct investment of $79.17m, followed by the United Kingdom and Hongkong which invested $19.35m and $17.92m respectively, according to the data issued by the State Bank of Pakistan (SBP).

During 11MFY25, China remained the largest investor, followed bythe  United Kingdom and the Hongkong with net FDI of $790.45m, $229m, and $215.16m, respectively.

It is pertinent to note that the total FDI in 11MFY25 stood at $1.98bn, down 7.64% YoY compared to FDI of $2.14bn in 11MFY24.

China held the majority proportion (39.95%) of direct investments in the country during 11MFY25, and investment from the respective country has increased substantially by 32.04% YoY when compared with the figure of $598.63m in 11MFY24.

United Kingdom’s contribution in net FDI stood at $229m (11.57%) in the 11MFY25, up by 4.1% YoY compared to $219.97m in SPLY.

The third major investor during 11MFY25, Hong Kong’s share was 10.87% with a direct investment of $215.16m, growing by 14.86% YoY.

Other major important investors were Switzerland, Others, and U.A.E. with a net FDI of $178.5m, $139.55m, and $104.87m respectively during 11MFY25.

The Foreign Portfolio Investment (FPI), which represents an investment in the equity market (both direct and indirect) during May stood at negative $48.84m.

On a cumulative basis, FPI showed a divestment of $624.37m during 11MFY25, against a divestment of $559.47m in the SPLY.

The Sweden emerged as the biggest portfolio investor during the month, as it invested $12m during the month and $48.31m during 11MFY25.

The total foreign investment in the review month clocked in at $145.08m.

On a cumulative basis, within 11MFY25, total foreign investment was reported at $1.35bn as compared to foreign investment of $1.58bn incurred in the corresponding period last year.

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