China’s net foreign direct investment (FDI) in Pakistan surged by 90.4% in fiscal year 2024–25, reaching $1.22 billion compared to $643.2 million in the previous year. This significant increase, as reported by the State Bank of Pakistan and Gwadar Pro, underscores China’s growing status as one of Pakistan’s leading foreign investors.
During June–July FY 2025, Pakistan received $1.71 billion in gross inflows from China, while outflows stood at $485.5 million, resulting in a net inflow of $1.22 billion.
Overall, Pakistan attracted $2.46 billion in FDI from all countries during FY 2024–25, with nearly half, 49.9%, coming from China. This further cements China’s dominant position among Pakistan’s foreign investment partners.
Other major contributors included Hong Kong with $470.1 million, the UAE with $283.1 million, Switzerland at $203.3 million, the UK with $201.8 million, and South Korea with $96.2 million. In June 2025 alone, China provided $49 million in net FDI, despite $39.1 million in outflows.
The power sector remained the primary recipient of Chinese investment, receiving $1.17 billion, of which $759.4 million was directed toward hydropower projects. The financial services sector also attracted considerable Chinese interest, with net FDI of $702.2 million. Additional sectors such as electrical machinery, oil and gas exploration, electronics, IT, food, petroleum refining, and textiles also benefitted from Chinese capital.
This dramatic rise in Chinese investment signals strong confidence in Pakistan’s economic potential and reflects the deepening China-Pakistan partnership, particularly in energy, infrastructure, and technology.
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