KARACHI: Foreign Direct Investment (FDI) in Pakistan declined sharply by 51 percent during the first seven months of the ongoing fiscal year (FY26).
According to the State Bank of Pakistan (SBP), net FDI reached USD 694 million during July–January FY26, down from USD 1.429 billion in the corresponding period of FY25 — a decrease of USD 735 million.
During the review period, total inflows stood at USD 2.1 billion, while outflows were recorded at USD 1.1 billion. On a month-on-month basis, FDI also witnessed a steep fall of 51 percent, dropping to USD 111 million in January 2026 compared to USD 226 million in January 2025.
Portfolio investment also remained under pressure, posting a net outflow of USD 287 million in the first seven months of FY26, reflecting continued instability in foreign investment across domestic equity and debt markets.
Analysts note that global economic uncertainty and domestic macroeconomic adjustments are remain key factors influencing foreign investor sentiment toward Pakistan. They said that long term and investment friendly policies were required to fetched the foreign investment in the country.
Overall foreign investment including FDI, portfolio investment, and foreign public investment dropped by 65 percent during July–January FY26. Total inflows fell by USD 967 million to USD 517 million, compared to USD 1.484 billion in the same period last fiscal year.
Meanwhile, inflows under the Roshan Digital Account (RDA) have reached USD 11.923 billion since its launch in September 2020 through January 2026. In January 2026 alone, RDA inflows edged up to USD 216 million, slightly higher than USD 213 million recorded in the previous month.
