According to the State Bank of Pakistan (SBP), total FDI inflows reached $1.12 billion during July-November FY25, a 31.3 percent year-on-year increase compared to $856 million in the corresponding period of FY24. While the growth rate is encouraging, the size of FDI in absolute terms falls short of being considered phenomenal.

There is also no change in the FDI trend in the country over the five months of FY25. During 5MFY25, China maintained its position as the largest investor, contributing $469 million (41.74% of total FDI), up 60 percent year over year from $293 million in 5MFY24. Hong Kong ranked second with an investment of $115.66 million, marking a 44.11 percent increase. The United Kingdom secured third place with $112.99 million in FDI, reflecting a 13.47 percent rise. Other contributors included Switzerland ($66.64 million), Canada ($64.89 million), and France ($56.76 million).

The sectoral breakdown reveals the same trends as in 5MFY25. The power sector led the inflows with $454.49 million, a 51 percent year-on-year increase in 5MFY24. The financial business sector attracted $249.41 million, slightly up from $246.54 million in a similar period last year. Oil and gas exploration recorded a 23.82 percent year-on-year growth. The communications sector experienced the highest divestment, with net outflows reaching $47.37 million, up from $19.27 million in the previous period. Transport, equipment, and pharmaceuticals faced divestments of $9.36 million and $7.53 million, respectively.

However, November 2024 saw an interesting monthly trend. FDI in November 2024 stood at $219 million, a 27 percent year-on-year increase and a substantial 65 percent month-on-month rise. Canada emerged as the largest investor in November 2024 with a net investment of $65 million, followed by China and the United Kingdom. On a sectoral basis, the mining & quarrying sector attracted the highest net FDI at $64.73 million, followed by the financial business sector and the power sector. The communications sector faced the largest net outflow, with foreign investors withdrawing $23.71 million.