FDI in Pakistan surges by 48 per cent in first quarter of FY25

ISLAMABAD: Foreign Direct Investment (FDI) in Pakistan surged by an impressive 48 per cent during the first quarter of the fiscal year 2025, according to the State Bank of Pakistan (SBP).

From July to September 2024, the country attracted FDI amounting to $771 million, a substantial increase from $520 million during the same period last year. This marks a notable growth of $251 million.

During this quarter, total FDI inflows approached $1 billion, significantly surpassing the outflows, which stood at just $231 million. This indicates a healthy influx of foreign capital into the country.

On the other hand, the portfolio investment sector faced difficulties, experiencing an outflow of $23 million in the first quarter of FY25. This represents a decline from a small investment of $9.6 million in the same period last year, despite the country’s equity market reaching record high levels.

According to Business Recorder, year-on-year, the foreign investment figures remain positive, with FDI rising by 81 per cent to $385 million in September 2024, compared to $213 million in September 2023.

Overall, total foreign investment in Pakistan—including FDI, portfolio investments, and foreign public investment—witnessed substantial growth of 70 per cent, reaching $903.5 million in the first quarter of FY25, up from $530 million in the same period of FY24.

It is noteworthy that net FDI improved in FY24, returning to levels seen in FY21-22 after a significant decline in FY23. Unlike last year, gross inflows greatly exceeded gross outflows, resulting in a net FDI increase of 16.9 per cent, amounting to $1.9 billion in FY24.

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