KARACHI: Pakistan’s net foreign direct investment (FDI) increased 24% year-on-year to $494 million during the first two months of FY2026-27, as stronger foreign inflows in August lifted investment despite higher cumulative outflows, according to central bank data.
Gross FDI inflows reached $706 million during July-August, up 18% from $596 million in the corresponding period last year. Outflows increased 7% to $211 million from $198 million, leaving net FDI at $494 million compared with $399 million a year earlier.
The improvement was particularly pronounced in August, when net FDI surged 80% year-on-year to $316 million from $175 million. Compared with July’s $179 million, net FDI increased 77%.
Gross FDI inflows during August rose 53% year-on-year to $402 million from $263 million and increased 32% from $304 million in July.
FDI outflows, meanwhile, declined 2% year-on-year to $86 million from $88 million. On a monthly basis, outflows fell 31% from $125 million in July.
Power and financial businesses recorded the highest FDI inflows during August, while China, Canada and the United Arab Emirates remained the major net contributors on a country-wise basis, according to the supplied market commentary.
The financial services sector attracted $147 million in FDI during July-August FY27, up from $113 million in the corresponding period last year.
The power sector, which accounted for the largest share of overall FDI, received $145 million during the two-month period, down from $157 million a year earlier.
Chinese firms contributed $176 million in FDI during July-August, compared with $121 million in the same period last year. Investment from the UAE increased to $58 million from $35 million.
The broader foreign investment data showed private investment at $296 million in August, up 121% from $134 million a year earlier and 50% from $197 million in July.
Cumulative private investment reached $493 million in the first two months of FY27, representing a 52% increase from $324 million in the corresponding period of FY26.
Private portfolio investment in equity securities recorded a net outflow of $20 million in August, compared with an outflow of $41 million a year earlier and an inflow of $18 million in July. During July-August, private equity portfolio investment recorded a net outflow of $2 million, sharply lower than the $75 million outflow recorded a year earlier.
Public investment, meanwhile, stood at $42 million in August compared with a net outflow of $42 million in August last year. It increased 62% from $26 million in July and reached $69 million during the first two months of FY27, compared with a $12 million outflow in the corresponding period last year.
Within public portfolio investment, equity securities recorded a $20 million outflow in August, compared with a $41 million outflow a year earlier and an $18 million inflow in July.
Public investment in debt securities stood at $62 million during August, compared with an outflow of $1 million in August last year. The figure jumped 730% from $7 million in July. Cumulative public debt securities investment reached $69 million in July-August, against an outflow of $12 million a year earlier.
Overall foreign investment — combining private and public investment — reached $358 million in August, up 169% from $133 million in the same month last year. It also increased 75% from $204 million in July.
During the first two months of FY27, total foreign investment reached $562 million, an 80% increase from $312 million in the corresponding period of FY26.
