China was Pakistan’s top source of foreign direct investment in the first half of FY2026, providing net inflows of $422.9 million from July to December, more than half of Pakistan’s total net FDI of $808.1 million.
Gross inflows from China stood at $583.4 million, with outflows of $160.5 million. Other notable investors included Hong Kong SAR ($163.8M), the UAE ($112.2M), and Switzerland ($106.8M), while the UK and US contributed modestly.
Investment concentrated in “electricity, gas, steam, and air conditioning supply” and “financial and insurance activities,” reflecting continued Chinese interest in Pakistan’s energy and services sectors. Despite overall net FDI declining 43.2% from FY2025, China’s role remained pivotal.
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