Pakistan's Power sector attracts highest net FDI of 62.85m in January

February 18, 2025 (MLN): Pakistan’s Power Sector witnessed the highest net Foreign Direct Investment (FDI) worth $62.85 million in January 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 Electronics sector as they experienced a net inflow of $61.38m and $21.6m respectively from foreign investors in the review month.

On the other hand, the sector that witnessed the biggest net outflow was the Communications sector as foreign investors withdrew an amount of $9.39m.

In the ongoing fiscal period (6MFY25), the Power sector has ranked first in terms of highest net FDI of $551.25m, compared to an inflow of $138.64m recorded in 6MFY24.

This was followed by the Financial Business sector which attracted a net FDI of $414.36m during the review period as against $352.58m in the previous fiscal year.

The third-highest net FDI receiver was Oil & Gas Explorations sector with cumulative net inflows of $187.03m, showing a rise of 15.29% YoY as the sector observed $162.23m net foreign inflows in SPLY.

Analyzing further, the sector that experienced the highest divestment was Communications sector, as the FDI balance for this sector stood at negative $46.4m in 6MFY25, compared to negative $21.58m in 6MFY24.

The Transport Equipment(Automobiles) sector was the second sector in line to record divestment through FDI of $12.79m, against an an outflow of $12.99m incurred in the SPLY.

Furthermore, the Pharmaceuticals & OTC Products sector also faced a divestment of $10.76m in 6MFY25, significantly down as in 6MFY24, the FDI stood at $35.1m.

It is crucial to mention that in January, FDI in the country clocked in at $194.41m.

On a cumulative basis, within 6MFY25, FDI has decreased to $1.52bn as compared to Foreign investment of $975.62m reported in the corresponding period last year.

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