Pakistan recorded net foreign direct investment (FDI) of $208 million in July 2025, showing a modest 7% increase compared to $195 million in the same month last year, according to fresh data.

Investment Flows: More Coming In, But Also More Going Out

The country saw total inflows reach $317 million, up 11% from $285 million in July 2024. However, outflows also climbed sharply, touching $109 million, which represents a 21% jump year-on-year. This indicates that while investor interest is growing, repatriation of profits and capital is also rising.

China Leads the Pack

China remained Pakistan’s largest investment partner, pouring in $51 million during July. Other notable contributors included Hong Kong ($30 million), Switzerland ($21 million), the UAE ($20 million), and the UK ($17 million).

Sectors Attracting the Most Capital

The power sector continued to dominate, pulling in $70 million, while the financial services industry followed closely with $59 million. Both areas have been consistent magnets for foreign capital, highlighting Pakistan’s energy demand and the push for financial inclusion as key drivers.

Why It Matters

While the uptick in FDI is relatively small, it suggests that Pakistan is holding investor interest despite ongoing economic challenges. The heavy concentration of investment in power and finance signals where foreign players see the most long-term potential, but the rising outflows remain a pressure point that policymakers will need to monitor.