KARACHI: Foreign direct investment (FDI) in Pakistan was recorded at $179 million at the beginning of the current fiscal year, representing a 264 per cent increase compared to the previous month, according to data from the central bank released on Tuesday.
However, this figure reflects a 20 per cent decline compared to the same period last year.During July, the power and financial sectors recorded the highest FDI inflows. China and Canada emerged as the primary contributors on a country-by-country basis, said Topline Securities in a note.
In the power sector, which accounts for the largest share of overall FDI, investments amounted to $57.5 million in July of the fiscal year 2026-27. This is in comparison to $86.8 million in June and $70.8 million in July of the previous year.
The financial services sector attracted $62.3 million in cross-border investments in the first month of FY27, down from $87 million in June and an increase from $58.8 million in July 2025.
The increase in FDI inflows in July was primarily due to outflows in some electronics and food sectors in the previous month.Overall, however, Pakistan continues to face challenges in attracting significantly larger amounts of new foreign capital. Despite these difficulties, a recent report by the Overseas Investors Chamber of Commerce and Industry (OICCI) indicated that foreign companies have consistently reinvested in Pakistan, expanded their operations, and contributed to national development, even in challenging economic conditions. They have invested more than $23 billion in the country over a decade.
