Net Foreign Direct Investment (FDI) in Pakistan grew 20% during the first half of the ongoing fiscal year (1HFY25), clocking in at $1.329 billion, revealed the State Bank of Pakistan (SBP) on Friday.

During July-December FY25, FDI inflows were $1,883.3 million against an outflow of $554.1 million.

Net FDI during the same period (July-December) of the previous year amounted to $1,107.9 million.

During December alone, net FDI amounted to $170 million, a 33% decrease when compared with the same month of the previous year when it stood at $252 million.

On a month-on-month basis, FDI was down over 23%, in comparison to $219 million clocked in during November.

Country-wise FDI

Meanwhile, during the first half of FY25, overall Chinese investment in the country increased by over 48%. China remained the largest investing country, accounting for 40% of the total share with a net FDI of $535.5 million compared with $361.5 million during the same period last year.

Hong Kong emerged as the second-largest investor with a net FDI of $134.3 million, compared with $117.4 million during the same period last year, an increase of 14% and accounting for 10% of the total share.

During 1HFY25, the power sector attracted the major share of investment i.e. 37% ($488.4 million) followed by the financial business sector ($353 million) and the oil & gas exploration ($166.7 million).

The development comes at a time when the country faces a shortage of dollars as it makes efforts to increase foreign exchange reserves through non-debt-creating inflow.

Pakistan’s current account posted a surplus of $582 million in December 2024 compared to a surplus of $279 million in the same month of the previous fiscal year, data released on Friday showed.