China remains largest source of FDI into Pakistan in August 2026

September 16, 2026 (MLN): China remained the largest source of foreign direct investment (FDI) into Pakistan in August 2026, with gross inflows of $134m, according to provisional data released by the State Bank of Pakistan (SBP).

After outflows of $21.1m, China's net FDI stood at $113m, up 78.80% month-on-month (MoM) from $63.2m in July 2026 and 63.77% year-on-year (YoY) from $69.0m in August 2025.

Overall, Pakistan's net FDI rose 76.88% MoM to $315.9m in August 2026, compared with $178.6m in July, and was up 80.41% YoY from $175.1m in August 2025.

China's gross FDI inflows increased 28.85% MoM from $104.0m in June and 47.42% YoY from $90.9m in August 2025. The country's stronger net FDI performance in August was supported by both higher inflows and lower outflows, which eased to $21.1m from $40.8m in July.

The United Arab Emirates recorded the sharpest turnaround among major sources, with gross inflows nearly tripling to $52.0m against outflows of $4.1m, resulting in net FDI of $47.9m.

This marked a jump of 369.61% MoM from $10.2m in July and 199.38% YoY from $16.0m in August 2025.

Canada posted the second-largest net FDI, with gross inflows of $50.0m and no reported outflows, resulting in net FDI of $50.0m, up 35.14% MoM from $37.0m in July. Canada's net FDI was sharply higher YoY as well, against just $0.1m in August 2025.

Hong Kong contributed gross inflows of $25.8m against outflows of $1.9m, leaving net FDI at $23.9m, up 18.32% MoM from $20.2m in July but down 20.60% YoY from $30.1m a year earlier.

The United Kingdom posted gross inflows of $32.7m and outflows of $19.0m, resulting in net FDI of $13.7m, down 13.84% MoM from $15.9m in July but up 95.71% YoY from $7.0m in August 2025.

Switzerland recorded gross inflows of $18.6m and outflows of $2.8m, bringing net FDI to $15.8m, down 5.95% MoM from $16.8m in July and 8.14% lower YoY from $17.2m in August 2025.

The August data show China consolidating its position as Pakistan's top source of FDI, while the sharp MoM rebound across China, the UAE and Canada helped lift overall net inflows to their highest monthly level in the period reviewed, even as traditional sources such as Hong Kong and Switzerland showed mixed year-on-year trends.

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