Pakistan’s foreign direct investment gained momentum in August 2026, with net FDI reaching USD 315.9 million, the highest monthly level in 2 years. This pushed cumulative net FDI in 2MFY27 to USD 494.5 million, up 24.1% year-on-year, supported by stronger gross inflows during the period.
China remained the largest source of FDI, while the UAE, UK, Hong Kong SAR, Switzerland, and Kuwait also contributed to investment inflows. However, country composition remains concentrated, with a limited number of major investors accounting for a significant share of total capital.
The sectoral composition shows a similar pattern, with Power and Financial Business attracting the largest shares of net FDI in August, while Trade and Electronics recorded notable increases over the first 2 months of FY27. While short-term inflows offer breathing room, building a sustainable base requires broadening FDI beyond capital intensive sectors.
#FDI #business #inflows #outflows #capital