KARACHI: Pakistan’s net foreign direct investment (FDI) surged 264% month-on-month to $179 million in July 2026, marking a sharp recovery from the previous month, according to State Bank of Pakistan.
The increase came after Pakistan recorded significant foreign investment outflows from the food and electronic sectors in June 2026.
Despite the strong monthly improvement, net FDI remained 20% lower than the amount recorded in July 2025, indicating that annual investment flows are still facing pressure.
The power and financial business sectors attracted the highest foreign investment inflows during July.
The improved investment performance at the beginning of FY27 could provide some support to Pakistan’s external financing position, although sustained growth in FDI will depend on continued investor confidence and economic conditions.
On a country-wise basis, China and Canada remained the largest net contributors to Pakistan’s foreign direct investment during July.
The sharp month-on-month rise in FDI highlights a significant improvement compared with June, when investment outflows had weighed heavily on the overall figure.
However, the year-on-year decline shows that Pakistan still needs stronger and sustained foreign investment inflows to support long-term economic growth and external financing requirements.
