Pakistan witnessed a sharp decline of 51 percent in Foreign Direct Investment (FDI) during the first seven months of the ongoing financial year 2025-26, according to the State Bank of Pakistan. FDI inflows totaled less than $700 million, compared to $1.43 billion in the same period of the previous fiscal year.
From July 2025 to January 2026, FDI remained at $73 million, sharply down from over $1.42 billion in the corresponding months of FY2024-25. January 2026 alone recorded $111 million in FDI, compared to $28 million in January 2025.
Portfolio investment also declined during this period, falling by $35 million, signaling a cautious approach among foreign investors amid global uncertainties. Experts emphasize the need for long-term, investment-friendly policies to attract and retain foreign capital in Pakistan