KARACHI: Pakistan’s net foreign direct investment (FDI) surged 80 percent year on year to $316 million in August, the country’s finance adviser said on Sunday, describing it as a “positive signal” as Islamabad moves from macroeconomic stability toward investment-led, sustainable growth.
In a post on X, Khurram Schehzad, an adviser to Finance Minister Muhammad Aurangzeb, said the $316 million foreign investment inflows was the highest monthly level achieved by the country in the last two years, while it reflected a 77 percent increase on a month-on-month basis.
“The increase was supported by stronger investment inflows from China, Canada and the UAE, alongside lower repatriation and outflows, resulting in a significantly stronger net FDI position during the month,” he said.
In Fiscal Year 2025-26 that ended in June, Pakistan’s net FDI fell 34 percent to $1.64 billion, equivalent to 0.39 percent of gross domestic product, according to World Bank data.
This was well below the recent Emerging Market and Developing Economies average of around 2 percent of GDP, and far below the nearly 5 percent peak recorded in 2008.
For policymakers, according to the former minister, investment promotion should not end when an investor enters the country.
“It is about moving investment, thinking from measuring capital flows alone to understanding how capital creates enduring economic capability,” he said.
Pakistan’s consumer prices rose to 11.1 percent in August from 9.2 percent in July, moving further above the central bank’s medium-term inflation target of 5-7 percent.
