Business

Pakistan’s foreign direct investment rises 20pc in 1Q of FY26-27

Pakistan’s net foreign direct investment (FDI) increased 20 percent year-on-year (YoY) to $720 million during the first quarter of FY26-27, compared with $600 million in the corresponding period last year, it was reported on Tuesday.

According to State Bank of Pakistan (SBP) data in September 2026, net FDI stood at $219 million, up 18% from $186 million in the same month last year.

However, investment declined 31% month-on-month (MoM) from $316 million recorded in August.

Country-wise data showed that Canada remained the largest source of net FDI during July-September FY27, contributing $229 million, compared with $225 million in the corresponding period of FY26, an increase of 2%.

China followed with $197 million, reflecting a 63% increase from $121 million in the same period last year.

Investment from the United Arab Emirates rose to $55 million from $20 million, while inflows from Hong Kong declined 25% to $26 million from $34 million.

Other countries collectively contributed $213 million during the quarter, compared with $200 million a year earlier, an increase of 6%.

Sector-wise, financial businesses attracted the highest net FDI during the first three months of FY27, receiving $191 million, up 39% from $138 million in the corresponding period last year.

Investment in the trade sector rose to $116 million from $2 million a year earlier, while mining and quarrying attracted $103 million, down 48% from $198 million.

Other sectors collectively received $171 million, compared with $156 million in the same period last year, an increase of 9%.

During September alone, Canada contributed $85 million in net FDI, followed by China with $44 million and the UAE with $7 million.

Investment from Hong Kong stood at $2 million, while other countries contributed $82 million.

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