China leads FDI in Pakistan with net inflow of $98.1m in January

February, 18 2025 (MLN): China emerged as the largest investor in Pakistan in January 2025, with a net direct investment of $98.1m, followed by the Hongkong and United Kingdom which invested $20.39m and $18.11m respectively, according to the data issued by the State Bank of Pakistan (SBP).

During 7MFY25, China remained the largest investor, followed by Hongkong and the United Kingdom with net FDI of $633.61m, $154.71m, and $148.19m respectively.

It is pertinent to note that the total FDI in 7MFY25 stood at $1.52bn, up 56.17% YoY compared to FDI of $975.62m in 6MFY24.

China held the majority proportion (41.59%) of direct investments in the country during 7MFY25, and investment from the respective country has increased substantially by 340.05% YoY when compared with the figure of $143.99m in 6MFY24.

Hongkong’s contribution in net FDI stood at $154.71m (10.15%) in the 7MFY25, up by 27.68% YoY compared to $121.16m in SPLY.

The third major investor during 7MFY25, United Kingdom’s share was 9.73% with a direct investment of $148.19m, growing by 7.58% YoY.

Other major important investors were the Switzerland, Others and France with a net FDI of $115.74m, $91.08m, and $82.13m respectively during 7MFY25.

The Foreign Portfolio Investment (FPI), which represents an investment in the equity market (both direct and indirect) during January stood at negative $95.21m.

On a cumulative basis, FPI showed an divestment of $176.99m during 7MFY25, against a investment of $96.52m in the SPLY.

The Luxembourg emerged as the biggest portfolio investor during the month, as it invested $5.21m during the month and $0.98m during 6MFY25.

The total foreign investment in the review month clocked in at $99.2m.

On a cumulative basis, within 7MFY25, total foreign investment was reported at $1.35bn as compared to foreign investment of $1.07bn incurred in the corresponding period last year.

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