China leads FDI in Pakistan with net inflow of $28m in February

March, 18 2025 (MLN): China emerged as the largest investor in Pakistan in February 2025, with a net direct investment of $28.17m, followed by the United Kingdom and Switzerland which invested $18.81m and $15.41m respectively,according to the data issued by the State Bank of Pakistan (SBP).

During 8MFY25, China remained the largest investor, followed by United Kingdom and the Hongkong with net FDI of $661.78m, $167.01m, and $160.37m respectively.

It is pertinent to note that the total FDI in 8MFY25 stood at $1.62bn, up 41.02% YoY compared to FDI of $1.15bn in 8MFY24.

China held the majority proportion (40.89%) of direct investments in the country during 8MFY25, and investment from the respective country has increased substantially by 284.88% YoY when compared with the figure of $171.94m in 8MFY24.

United Kingdom’s contribution in net FDI stood at $167.01m (10.32%) in the 8MFY25, up by 4.75% YoY compared to $159.44m in SPLY.

The third major investor during 8MFY25, Hongkong’s share was 9.91% with a direct investment of $160.37m, growing by 17.43% YoY.

Other major important investors were the Switzerland, Others and France with a net FDI of $131.15m, $103.05m, and $93.06m respectively during 8MFY25.

The Foreign Portfolio Investment (FPI), which represents an investment in the equity market (both direct and indirect) during February stood at negative $33.96m.

On a cumulative basis, FPI showed an divestment of $210.95m during 8MFY25, against a investment of $111.79m in the SPLY.

The United States emerged as the biggest portfolio investor during the month, as it invested $3.8m during the month and $116.12m during 8MFY25.

The total foreign investment in the review month clocked in at $60.77m.

On a cumulative basis, within 8MFY25, total foreign investment was reported at $1.41bn as compared to foreign investment of $1.26bn incurred in the corresponding period last year.

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