Islamabad: Foreign direct investment (FDI) in Pakistan increased 264% month-on-month to USD 179 million in July, the first month of fiscal year 2026-27, according to data released by the State Bank of Pakistan (SBP).
Despite the sharp monthly increase, FDI was 20% lower than the USD 223.6 million recorded in July 2025. The power and financial services sectors attracted the largest shares of foreign investment during July, while China and Canada were the leading sources of inflows, according to Topline Securities.
The power sector received USD 57.5 million in FDI during the month, compared with USD 86.8 million in June and USD 70.8 million in July 2025. Investment in the financial services sector stood at USD 62.3 million, down from USD 87 million in June but higher than the USD 58.8 million recorded in July last year.
Topline Securities attributed part of the sharp month-on-month increase in overall FDI to outflows recorded in some electronics and food sectors during June. The July figures come as Pakistan continues efforts to attract greater volumes of foreign capital and strengthen investor confidence.
Meanwhile, the Overseas Investors Chamber of Commerce and Industry (OICCI) said foreign companies operating in Pakistan had continued to reinvest, expand their operations and contribute to the economy despite challenging economic conditions. According to the OICCI, foreign companies have invested more than USD 23 billion in Pakistan over the past decade.
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