ISLAMABAD— Pakistan pulled in $364.3 million in foreign direct investment (FDI) during the first two months of the new fiscal year, mostly in the power and financial services sectors, according to the government’s latest Monthly Economic Update & Outlook.
China stood out as the biggest contributor. The power sector received $156.9 million, while financial services attracted $110.2 million. Together, these two sectors made up more than 70 percent of all investment inflows.
But it wasn’t all good news. The report noted that portfolio investment went in the opposite direction, with private investors pulling out $74.8 million and public investors withdrawing another $11.8 million. Overall, when both FDI and portfolio flows are combined, total foreign investment actually slipped into the negative at -$277.7 million.
Officials explained that while foreign money is still coming in, it’s largely focused on traditional areas like energy and banking. The government says it’s working to expand investment into manufacturing, IT, and agriculture to create more balance.
Still, challenges remain. Rising global interest rates, ongoing geopolitical tensions, and disrupted supply chains are making it harder for developing countries like Pakistan to secure long-term investment.
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