Chinese Investment in Pakistan Jumps 90% in FY2025

A record-breaking year as Chinese capital strengthens economic ties

Chinese Investment in Pakistan Jumps 90% in FY2025


China’s net foreign direct investment (FDI) in Pakistan witnessed a remarkable 90.4% increase, reaching $1.22 billion in the fiscal year 2024–25, up from $643.2 million the previous year, according to the State Bank of Pakistan (SBP). This significant rise reaffirms China’s growing stature as a key economic partner and the top foreign investor in Pakistan.

From June to July FY2025, the total FDI inflow from China stood at $1.71 billion, with $485.5 million in outflows, resulting in a net contribution of $1.22 billion. Overall, Pakistan received $2.46 billion in FDI from global partners during this fiscal year, with China accounting for 49.9% of the total—underscoring the depth of bilateral investment relations.

Beyond China, other major contributors included Hong Kong ($470.1 million), UAE ($283.1 million), Switzerland ($203.3 million), UK ($201.8 million), and South Korea ($96.2 million). Notably, in June 2025, China alone added $49 million in net FDI, despite outflows amounting to $39.1 million.

The power sector emerged as the largest recipient of Chinese FDI in FY 2024-25, securing $1.17 billion, with $759.4 million directed toward hydropower projects. The financial services sector followed closely, attracting $702.2 million in net inflows.

Additionally, sectors like electrical machinery, oil and gas exploration, electronics, IT, food, petroleum refining, and textiles also benefited from China’s growing investment footprint.

This sharp surge in Chinese FDI showcases Beijing’s renewed confidence in Pakistan’s economic landscape and highlights the continued strengthening of the China-Pakistan Economic Corridor (CPEC) through strategic investments in energy, infrastructure, and technology.