Comment by Riaz Haq 5 hours ago

Foreign firms invest $23 billion in Pakistan over decade, exceeding net FDI — report | Arab News

https://www.arabnews.com/node/2654105/pakistan

KARACHI: Foreign companies already operating in Pakistan invested more than $23 billion in the country over the past decade, exceeding cumulative net foreign direct investment of about $21 billion during the same period, the country’s largest foreign investors’ chamber said on Monday.

The comparison underscores a persistent challenge for Pakistan: established multinational companies have continued reinvesting in the country, but Islamabad has struggled to attract substantially larger amounts of new foreign capital.


Pakistan has stabilized after a severe balance-of-payments crisis in 2022-23 pushed it close to default and forced it to seek another bailout from the International Monetary Fund. Under a $7 billion IMF program approved in 2024, foreign exchange reserves have recovered, inflation has eased sharply from its 2023 peak and economic growth has strengthened, though the IMF still projects FDI at only around 0.5 percent of gross domestic product.

“The findings reaffirm the confidence that OICCI members continue to place in Pakistan’s long-term economic potential,” according to a latest report by the Overseas Investors Chamber of Commerce and Industry, or OICCI, which represents more than 200 foreign-invested companies operating across major sectors of the Pakistani economy.

“Our members have consistently reinvested in the country, expanded their operations and continued contributing to national development despite challenging economic conditions. Their cumulative investment of over USD 23 billion during the past decade is a strong vote of confidence in Pakistan’s future.”

OICCI said its members collectively generated Rs13.1 trillion ($47.2 billion) in gross revenue in fiscal 2025, held Rs42 trillion ($151.2 billion) in assets and invested Rs615 billion ($2.2 billion) in capital expenditure. They also paid Rs3.2 trillion ($11.5 billion) in taxes and other government levies, according to the report.

The chamber said its members’ cumulative investment over the decade exceeded Pakistan’s approximately $21 billion in net FDI over the same period. State Bank of Pakistan data define FDI as cross-border investment including equity, intercompany lending, capital equipment and reinvested earnings, net of outflows.

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Pakistan - Foreign Direct Investment, Net Inflows (BoP, Current US$) - 2026 Data 2027 Forecast 1970-2024 Historical….$2.7 billion in 2024


https://tradingeconomics.com/pakistan/foreign-direct-investment-net...

Foreign direct investment, net inflows (BoP, current US$) in Pakistan was reported at 2725600000USD ($2.7 billion) in 2024, according to the World Bank collection of development indicators, compiled from officially recognized sources. Pakistan - Foreign direct investment, net inflows (BoP, current US$) - actual values, historical data, forecasts and projections were sourced from the World Bank on August of 2026.

Comment by Riaz Haq 5 hours ago

Foreign Direct Investment (FDI) in Pakistan remains low relative to its GDP and regional peers, averaging around 0.6% of GDP. Inflows reached roughly $2.57 billion, driven heavily by key partners like China, though profit outflows and economic hurdles continue to challenge net capital accumulation.Current Trends and InflowsRecent Numbers: Inward FDI flows grew to approximately $2.56 billion, up from prior years, though monthly and yearly totals fluctuate based on macroeconomic conditions.Key Investors: China and Hong Kong remain the leading sources of investment, largely tied to energy, infrastructure, and the China-Pakistan Economic Corridor (CPEC). Western nations, including the United States, maintain active investments in consumer goods, tech, and agribusiness.Profit Repatriation: Outflows via profit and dividend remittances by foreign firms have at times outpaced new incoming gross FDI, stressing foreign exchange reserves.Major Growth SectorsEnergy and Power: Historically captures a large share of foreign capital.ICT and Telecom: Information technology, software development, and telecommunications see steady interest.Agribusiness and Retail: Fast-moving consumer goods and franchise networks.Minerals and Special Economic Zones (SEZs): The state is increasingly targeting mining and industrial zones to revive capital inflows.Core Barriers to FDIPolicy and Political Instability: Frequent shifts in executive rules, high corporate tax rates, and security or political friction deter long-term commitments.Macroeconomic Vulnerability: High inflation risks, exchange rate fluctuations, and low foreign exchange reserves.Ease of Doing Business: Protracted bureaucratic hurdles and a large informal economy limit formal market transparency.

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Foreign direct investment in Pakistan rises 264% MoM to $179 million in July

Power sector draws $57.5 million and financial services $62.3 million; China, Canada top contributors as annual inflows fall 20%


https://profit.pakistantoday.com.pk/2026/08/19/foreign-direct-inves...



Foreign direct investment (FDI) in Pakistan rose 264% month-on-month to $179 million in July, the first month of FY2026-27, but remained 20% lower than the inflow recorded in the same month last year, according to data released by the central bank on Tuesday.

The power and financial services sectors attracted the largest foreign investments during the month, while China and Canada were the leading sources of inflows, according to Topline Securities.

The power sector received $57.5 million in FDI in July, compared with $86.8 million in June and $70.8 million in July 2025.

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