KARACHI: Foreign direct investment (FDI) into Pakistan dropped 28.4 per cent year-on-year (YoY) to $1.623 billion in 11 months of the fiscal year 2026, the central bank data showed on Wednesday.
In May, FDI clocked in at $214.3 million, a significant 293 per cent increase compared to April. However, these investments fell 8.0 per cent from a year earlier.Cross-border investments in the power sector, which accounts for the largest share of overall FDI, fell to $871.4 million during the July-May FY26 period, down from $1.091 billion in the same period last year.
Additionally, FDI inflows into the oil and gas exploration sector recorded an outflow of $5 million over the first 11 months of this fiscal year, compared with inflows of $121.8 million during the same period last year. On the other hand, FDI in the financial services sector increased to $718.5 million from July to May FY26, up from $646.4 million in the same period of FY25.
Pakistan’s economic survey for 2025-26 said that while FDI has declined, the continued reforms, investment facilitation under SIFC, and improving macroeconomic stability are expected to strengthen investor confidence and support higher foreign direct investment inflows over the medium term.
