Foreign direct investment (FDI) in Pakistan dropped 64.3% in April 2025, totaling $140.8 million against $394.5 million in the same month last year, according to data issued by the State Bank of Pakistan (SBP).
Overall, for the first 10 months of the ongoing fiscal year, the FDI stood at $1.78 billion, a 2.8% decrease from the $1.84 billion recorded in the previous year. Despite these declines, overall foreign investment in Pakistan is on an upswing, totaling $1,209.4 million in the first 10 months of this fiscal year against $1,038.2 million last year.
In direct investment, highest inflows were observed in the finance sector at $56.7 million, followed by $25.3 million in oil and gas, $22.9 million in power generation, and $10 million in the food sector. China was the leading contributor to FDI in April, with net flows of $26.8 million, followed by $23.4 million from the United Kingdom and $21.4 million from Hong Kong.
Earlier this month, Finance Minister Muhammad Aurangzeb and Adviser to the Prime Minister on Privatization Muhammad Ali visited London on a two-day trip aimed at engaging top international financial institutions. The initiative is part of the government’s ongoing efforts to attract foreign investment by implementing structural reforms and improving macroeconomic stability.
Officials hope that by opening key sectors to foreign investors, Pakistan can spur economic growth and create new opportunities for employment and innovation. As part of this initiative, the government has also decided to slash tariffs to boost exports.