Power sector leads gross FDI inflow in July

August 18, 2026 (MLN): Pakistan’s power sector attracted the largest gross foreign direct investment (FDI) inflows in July 2026, receiving $98.1m, according to data released by the State Bank of Pakistan (SBP).

However, outflows of $40.6m reduced the sector’s net FDI to $57.5m, down 33.76% month-on-month (MoM) from $86.8m in June 2026 and 18.79% year-on-year (YoY) from $70.8m in July 2025.

Despite the decline in net FDI, gross inflows into the power sector remained broadly stable, rising 0.41% MoM from $97.7m in June and 0.31% YoY from $97.8m in July 2025. The decline in net investment was therefore primarily driven by higher outflows, which increased to $40.6m from $10.9m in June.

Within the power sector, coal power attracted the largest inflows at $53.1m, with outflows of $19.5m resulting in net FDI of $33.6m. Net investment in coal power declined 22.94% MoM from $43.6m in June but increased 17.48% YoY from $28.6m in July 2025.

Hydel power received $36.8m in gross inflows and recorded outflows of $19.8m, leaving net FDI at $17.0m. Net hydel investment fell 53.17% from $36.3m in both June 2026 and July 2025.

Thermal power attracted $8.2m in inflows against $1.3m in outflows, resulting in net FDI of $6.9m. Net investment in thermal power was unchanged MoM but increased 16.95% YoY from $5.9m.

Meanwhile, the Financial Business sector recorded the highest net FDI among all sectors during July, attracting gross inflows of $67.8m and outflows of $5.5m to generate net FDI of $62.3m. Net investment in the sector declined 28.39% MoM from $87.0m but increased 5.95% YoY from $58.8m.

The Trade sector was another major recipient, posting gross inflows of $42.6m, outflows of $7.0m and net FDI of $35.6m. Net investment declined 8.95% MoM from $39.1m but surged 626.53% YoY from just $4.9m in July 2025.

Electrical Machinery attracted $12.7m in gross inflows with negligible outflows, resulting in net FDI of $12.6m. Net investment remained unchanged from June but was 6.67% lower YoY than the $13.5m recorded in July 2025.

Overall, Pakistan received $304.0m in gross FDI inflows during July 2026, while outflows stood at $125.4m, resulting in total net FDI of $178.6m. The figures indicate that while the power sector continued to dominate gross investment inflows, the financial business sector generated the highest net FDI during the month.

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