Pakistan's FDI Inflows: China Tops with $72.6M, 42% of January Total
China has reinforced its position as the foremost source of Foreign Direct Investment (FDI) for Pakistan, with a net contribution of $72.6 million in January 2026 alone. According to the latest data released by the State Bank of Pakistan (SBP), this figure constituted a significant 41.9% of the nation's total net FDI inflows of $173.3 million for the month. The monthly net stems from gross inflows of $98.8 million from China, offset by outflows of $26.2 million.
Expanding the view to the first seven months (July-January) of the fiscal year 2025-26, China's leading role becomes even more pronounced. During this period, Pakistan attracted total FDI inflows of $2.08 billion against outflows of $1.10 billion, resulting in a net FDI of $981.4 million. China was the dominant force, providing $495.5 million in net investment, which accounts for a substantial 50.4% of Pakistan's total net FDI. Other significant investor nations included the United Arab Emirates ($126.2 million), Switzerland ($124.2 million), and the United Kingdom ($64 million).
Sectoral analysis reveals where this international capital is flowing. The combined sector of water supply, sewerage, waste management, and remediation activities attracted the lion's share, with net FDI of $566.9 million. This was followed by financial and insurance activities at $470.5 million, manufacturing at $234.5 million, and professional, scientific, and technical activities at $65.2 million.
Despite these inflows, the broader FDI landscape shows a contraction. A comparative review indicates that net FDI for July-January FY2026, at $981.4 million, is 33.9% lower than the $1.48 billion recorded in the same period of the previous fiscal year (FY2024-25), highlighting a challenging overall investment climate even as Chinese investment remains steadfast.