China invested $711.3 million in Pakistan Between July 2024 and April 2025, making it the country’s top foreign investor, according to data released by the State Bank of Pakistan (SBP) on May 17. The investment flowed into key areas such as finance and energy, highlighting China’s growing economic partnership with Pakistan even as overall foreign investment declined.
The SBP figures showed a 38.9% increase in Chinese foreign direct investment (FDI) compared to the same period last year. In April 2025 alone, Pakistan received $42 million in gross FDI from China. After accounting for $15.2 million in outflows, the net inflow stood at $26.8 million.
Despite a 64.3% year-on-year drop in total FDI during April, Chinese investment stayed on track, showing steady confidence in Pakistan’s long-term potential.
The financial sector received the most investment at $575.1 million, followed by the energy sector with $523.3 million, including $397.7 million in hydropower and $109 million in coal power. Extra funds went into oil and gas exploration ($242.2 million), electronics ($107.2 million), and the tobacco industry ($70.2 million).
Pakistan’s total FDI for July–April FY25 reached $1.78 billion, slightly down from $1.84 billion the prior year. However, analysts view the sharp rise in Chinese investment as a strong sign of continued financial cooperation between the two countries, particularly in sectors vital for economic development.
