Pakistan sees a 20% increase in FDI in FY25

KARACHI: In a positive development for Pakistan’s economy, direct foreign investment (FDI) has seen a 20% increase during the first half of the fiscal year 2025. According to the State Bank of Pakistan, FDI reached a record $1.33 billion during this period, highlighting an encouraging growth trajectory for the nation’s economy.

However, the data also revealed a decline in FDI for December 2024, with investments dropping by 33% compared to last year. The total FDI for December 2024 stood at $170 million, down from $252 million in December 2023. This represents a significant reduction on a year-over-year basis.

Every month, FDI showed a decline of 23% when compared to November 2024, which saw $220 million in direct foreign investments.

The sectors attracting the most foreign investment were the power sector and financial services, which continue to drive much of the economic activity in the country. Additionally, the primary contributors to FDI were China, Hong Kong, and the United Kingdom.