Pakistan's Power sector attracts net FDI of 86.5m in August

September 18, 2025 (MLN): Pakistan’s Power Sector witnessed the highest net Foreign Direct Investment (FDI) worth $86.5 million in August 2025, as per the latest data released by the State Bank of Pakistan (SBP).

The second and third highest rank was held by the Financial Business and Electrical Machinery sectors as they experienced a net inflow of $51.3m and $12.3m, respectively, from foreign investors in the review month.

On the other hand, the sector that witnessed the biggest net outflow was the Mining & Quarrying sector as foreign investors withdrew an amount of $22m.

In the ongoing fiscal period (2MFY26), the Power sector has ranked first in terms of the highest net FDI of $156.9m, compared to an inflow of $275.7m recorded in 2MFY25.

This was followed by the Financial Business sector, which attracted a net FDI of $110.2m during the review period as against $107.7m in the previous fiscal year.

The third-highest net FDI receiver was Others sector with cumulative net inflows of $30.3m, showing a rise of 57.81% YoY as the sector observed $19.2m net foreign inflows in SPLY.

Analyzing further, the sector that experienced the highest divestment was the Communications sector, as the FDI balance for this sector stood at negative $8.4m in 2MFY26, compared to positive $1.8m in 2MFY25.

The Transport Equipment(Automobiles) sector was the second sector in line to record divestment through FDI of $4.5m, against an outflow of $4m incurred in the SPLY.

Furthermore, the Petro Chemicals sector also faced a divestment of $3.4m in 2MFY26, as in 2MFY25, the withdrawal stood at $3.4m.

It is crucial to mention that in August, FDI in the country clocked in at $156.2m.

On a cumulative basis, within 2MFY26, FDI has decreased to $364.3m as compared to Foreign investment of $467.1m reported in the corresponding period last year.

Copyright Mettis Link News