Pakistan recorded net foreign direct investment (FDI) of $711.3 million from China during the first ten months (July–April) of the 2024–25 fiscal year, marking a 38.9% increase compared to $512.2 million during the same period last year, according to data released by the State Bank of Pakistan (SBP) on Friday.
The sharp year-on-year rise underscores the strengthening economic ties between the two nations and reaffirms China’s position as Pakistan’s leading source of foreign investment.
In April 2025 alone, Pakistan received $42 million in gross inflows from China. After accounting for $15.2 million in outflows, the net inflow for the month stood at $26.8 million.
Between July and April, total Chinese FDI amounted to $1.03 billion, with $317.4 million in outflows, resulting in a net FDI of $711.3 million. In comparison, during the same period in FY2023–24, gross Chinese FDI totaled $867.5 million, with $355.3 million in outflows.
While overall FDI to Pakistan declined slightly—with $1.78 billion recorded in July–April FY25, down 2.5% from $1.84 billion in the same period last year—Chinese investment remained a bright spot, growing steadily amid global investment uncertainty.
According to the SBP’s provisional data, total FDI for April 2025 was $140.8 million, down 64.3% from $394.5 million in April 2024. Despite the year-on-year decline in aggregate figures, continued Chinese inflows suggest resilient investor confidence in Pakistan’s long-term prospects, particularly in key sectors.
A sector-wise breakdown shows that the financial sector led the way, receiving $575.1 million in net FDI during July–April FY25. The power sector followed with $523.3 million, including $397.7 million in hydropower and $109 million in coal power.
The oil and gas exploration sector attracted $242.2 million, while electronics saw $107.2 million in FDI. The tobacco and cigarette industry also registered healthy investment, receiving $70.2 million in net inflows.
Despite broader FDI contraction, Pakistan’s strong sectoral performance—particularly supported by Chinese capital—reflects continued global interest in the country’s energy, finance, and industrial segments.