Karachi, July 18, 2025: Pakistan netted a foreign direction investment (FDI) of a record $2.45 billion in fiscal year (FY) 2025, marking a 5% increase from $2.34 billion in FY2024.

In June 2025, net FDI was recorded at $207 million, slightly up from $205 million in June 2024.

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Key highlights

  • Total FDI inflows for June 2025: $310 million, which is 27% more than last year when it was $244 million.
  • FDI outflows for June 2025: $104 million, which is a big jump of 168% from last year when it was a mere $39 million.

Top FDI sources

  1. China: $1.2 billion
  2. Hong Kong: $470 million
  3. UAE: $283 million
  4. Switzerland: $203 million
  5. United Kingdom: $202 million

Sector Breakdown

  1. Power sector: $1.1 billion
  2. Financial services: $702 million
  3. Electrical machinery: $176 million
SectorInvestment (in million USD)
Power1,100
Financial services702
Electrical machinery176

It Sector Performance

The country’s IT exports, including IT and IT-related services, totaled $3.8 billion in FY2025, showing an 18% increase from $3.2 billion in FY2024.

However, this fell short of the government’s target of $4.2 billion.

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The IT sector is now the third-largest source of foreign exchange for Pakistan, accounting for 45% of total service exports by the end of FY 2025.

Government Initiatives

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To support the IT sector, the government has reportedly allowed companies to retain 50% of their foreign currency earnings in special forex accounts and introduced cash rewards for top exporters.

Future Outlook

The government aims to boost IT exports to $5 billion in the next fiscal year and to an ambitious $10 billion by FY2029 under the “Uraan Pakistan” vision. The focus is on advanced technologies and innovation to meet the rapidly evolving market demands.

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