China leads FDI in Pakistan with 40% share in 11MFY25

China leads FDI in Pakistan with 40% share in 11MFY25 as per latest data from the State Bank of Pakistan.

China continued to be the largest contributor of foreign direct investment (FDI) in Pakistan during the first 11 months of the fiscal year 2024-2025, with its net investment increasing by 32.04% compared to the same timeframe last year, according to the State Bank of Pakistan (SBP) on Tuesday.

Between July 2024 and May 2025, Pakistan received $790.4 million in net FDI from China, a notable rise from $598.6 million recorded during the same period in the previous fiscal year, SBP data showed.

This Chinese investment made up around 40% of Pakistan’s total net FDI, which stood at $1.978 billion. The overall FDI inflows totaled $2.893 billion, while outflows amounted to $914.3 million.

China’s gross FDI during the period was $1.118 billion, which was partially offset by $327.6 million in outflows.

In May 2025 alone, China remained the top investor with a net FDI of $79.9 million, representing 26.1% of that month’s total net inflows of $193.9 million. Other key investors during May included the UK with $19.3 million, Hong Kong SAR with $17.9 million, Switzerland with $16.1 million, and the U.S. with $12.4 million.

The power sector emerged as the top recipient of FDI during this period, attracting $391.5 million in net investment. It was followed by the financial services sector with $312.3 million, the food industry with $292.5 million, and oil and gas exploration with $139.1 million.

Additional sectors drawing foreign investment included communications ($128.3 million), transport ($110 million), chemicals ($74.1 million), pharmaceuticals ($40.2 million), cement ($38.9 million), and transport equipment ($30.1 million).