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Foreign Direct Investment in Pakistan Falls 26% in First 4 Months of FY26

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5 min read
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Legal Editorial Desk
Foreign Direct Investment in Pakistan Falls 26% in First 4 Months of FY26
The net Foreign Direct Investment (FDI) in the country stood at $748 million in the first 4 months of FY2025-26, down 26 percent over the FDI of $1,011 million in the same period last year. In October 2025, foreign direct investment inflows stood at $179 million, up 23 percent over inflows of $146 million in October 2024. Outflows during the month stood at $139 million, down 28 percent compared to outflows of 193 million in the same month last year. In October, the highest FDI inflows of $38 million were received from China, followed by UAE at $36 million, Switzerland at $17 million, and Hong Kong with inflows of $24 million during the period under review. The Financial Business sector was the major recipient of FDI in October 2025, attracting inflows of $80 million, followed by the power sector at $53 million, and personal services at $10 million.
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Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.

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