## China Leads Pakistan FDI Inflows with Sustained Growth in FY2024-25

China maintained its position as the foremost source of Foreign Direct Investment (FDI) into Pakistan during the initial eleven months of the 2024-2025 fiscal year, according to data released by the State Bank of Pakistan (SBP). The central bank reported that net FDI from China reached $790.4 million between July 2024 and May 2025, representing a significant 32.04% increase compared to the $598.6 million recorded in the corresponding period of the previous fiscal year.

This Chinese investment constituted approximately 40% of Pakistan’s total net FDI inflow of $1.978 billion for the eleven-month period. Overall gross FDI inflows amounted to $2.893 billion, counterbalanced by outflows totaling $914.3 million. Specifically for China, gross inflows were $1.118 billion, partially offset by outflows of $327.6 million.

Focusing solely on May 2025, China’s net FDI stood at $79.9 million, securing its status as the leading investor for the month. This figure accounted for 26.1% of Pakistan’s total net FDI inflow of $193.9 million during May. Other notable contributors to net FDI in May included the United Kingdom ($19.3 million), Hong Kong SAR of China ($17.9 million), Switzerland ($16.1 million), and the United States ($12.4 million).

Analyzing sectoral distribution over the eleven months, the power sector attracted the highest net FDI, amounting to $391.5 million. The financial business sector followed with $312.3 million, trailed by the food sector at $292.5 million and oil and gas exploration at $139.1 million. Additional sectors receiving investment included communications ($128.3 million), transport ($110 million), chemicals ($74.1 million), pharmaceuticals ($40.2 million), cement ($38.9 million), and transport equipment ($30.1 million).