Islamabad, June 17, 2025: Pakistan witnessed a steep decline in Foreign Direct Investment (FDI) in May 2025, with net inflows sliding to $194 million, marking a 37% drop compared to $306 million recorded in the same month last year.
According to official data, FDI inflows in May 2025 amounted to $232 million, reflecting a 34% decrease from $352 million during May 2024. Simultaneously, outflows dropped to $38 million, down by 18% from $46 million in the corresponding period.
During the first eleven months of the fiscal year (11MFY25), Pakistan’s cumulative net FDI stood at $1.97 billion, showing an 8% year-on-year decline from $2.14 billion in 11MFY24. The persistent downward trend raises concerns over investor confidence and economic stability.
China Leads as Top Investor in 11MFY25
China retained its position as the largest investor, channeling $790 million into the Pakistani economy. The United Kingdom followed with $229 million, Hong Kong contributed $215 million, while Switzerland and the UAE added $179 million and $105 million respectively during the same period.
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Financial and Power Sectors Dominate FDI Portfolio
Among all sectors, the financial business sector attracted the highest investment, bringing in $629 million. The power sector remained strong with $563 million, and oil and gas exploration garnered $266 million in 11MFY25.
This consistent dip in FDI figures underlines the need for renewed investor-friendly reforms and long-term economic policy stability to restore momentum in foreign investments across key sectors in Pakistan.
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