KARACHI: Foreign Direct Investment (FDI) surged by 20 percent in the first half of the current fiscal year (FY25), reflecting improved investor confidence despite challenges in portfolio investments.
According to the State Bank of Pakistan (SBP), FDI inflows reached $1.33 billion during July-December FY25, up from $1.11 billion in the same period of FY24, marking a $221 million increase. During this period, total FDI inflows stood at $1.88 billion, significantly surpassing outflows of $554 million.
However, despite the improved performance of the equity market, portfolio investments struggled, with an outflow of $222 million in the first half of FY25.
On a year-on-year basis, FDI in December 2024 declined by 32 percent, dropping to $170 million from $252 million in December 2023.
Overall, total foreign investment, which includes FDI, portfolio investment, and foreign public investment, recorded a slight growth of 5.8 percent, reaching $1.247 billion in July-December FY25, compared to $1.18 billion in the same period of FY24.
Copyright Business Recorder, 2025
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