Power sector again tops FDI inflows in August 2026

September 16, 2026 (MLN): Pakistan's power sector attracted the largest gross foreign direct investment (FDI) inflows in August 2026, receiving $98.7m, according to provisional data released by the State Bank of Pakistan (SBP).

With outflows of just $10.9m, the sector's net FDI rose to $87.8m, up 52.70% month-on-month (MoM) from $57.5m in July 2026, and up 1.04% year-on-year (YoY) from $86.9m in August 2025.

The improvement was driven largely by a sharp pullback in outflows, which fell 73.15% MoM to $10.9m from $40.6m in July, even as gross inflows held broadly steady, edging up 0.61% MoM from $98.1m and 0.92% YoY from $97.8m.

Within the power sector, hydel power staged the strongest recovery, drawing $37.4m in inflows against outflows of only $0.1m for net FDI of $37.3m  up 119.41% MoM from $17.0m in July, when outflows had spiked to $19.8m.

Net hydel investment also rose 2.47% YoY from $36.4m in August 2025.

Coal power attracted $53.1m in inflows and $9.5m in outflows, leaving net FDI of $43.6m, up 29.76% MoM from $33.6m but unchanged YoY.

Thermal power posted net FDI of $6.9m on inflows of $8.2m and outflows of $1.3m, flat both MoM and YoY.

Financial Business was the second-largest recipient, with gross inflows of $90.2m against outflows of $5.5m, generating net FDI of $84.7m  up 35.96% MoM from $62.3m and 54.85% YoY from $54.7m.

The Trade sector also had a standout month, with inflows of $54.8m, outflows of just $1.0m and net FDI of $53.8m, up 51.12% MoM from $35.6m and up 767.74% YoY from a mere $6.2m in August 2025.

Electrical Machinery drew $12.7m in gross inflows with negligible outflows, keeping net FDI flat MoM at $12.6m, though 2.44% higher YoY from $12.3m.

Overall, Pakistan received $401.9m in gross FDI inflows during August 2026, up 32.20% MoM and 52.93% YoY. Outflows eased to $86.1m, down 31.34% MoM and 1.82% YoY, lifting total net FDI to $315.9m — a jump of 76.88% MoM from $178.6m in July and 80.41% YoY from $175.1m in August 2025.

For the first two months of FY27 (July–August 2026), cumulative net FDI stood at $494.5m on gross inflows of $705.9m and outflows of $211.5m, compared with net FDI of $398.6m over the same period of FY26.

The figures suggest a broad-based improvement in net investment during August, as sharply lower outflows in the power sector combined with strong gains in Financial Business and Trade to push overall net FDI to its highest monthly level in the period reviewed.

Copyright Mettis Link News