China Contributes Over 52% of Pakistan’s Net FDI in FY2025-26, Reinforcing Strategic Economic Partnership

Independent Report
ISLAMABAD, July 19: China remained Pakistan’s largest foreign investor during fiscal year 2025-26, contributing more than half of the country’s total net foreign direct investment (FDI), according to provisional figures released by the State Bank of Pakistan (SBP).
Pakistan attracted net FDI of $1.637 billion during FY2025-26, down from $2.477 billion in the previous fiscal year. China accounted for $862 million, representing 52.7 percent of the country’s total net FDI. Chinese gross investment inflows reached $1.198 billion, while outflows stood at $336.3 million, making China Pakistan’s leading source of foreign investment.
In June 2026, Pakistan recorded net FDI of $13.5 million, with China’s contribution of $43 million offsetting investment withdrawals from several other countries. According to the SBP, gross FDI inflows during FY2025-26 totaled $3.568 billion, while outflows reached $1.931 billion.
The power sector remained the largest recipient of foreign investment with $958.3 million, followed by the financial business sector with $805.5 million, communications with $456.1 million, and electronics with $66.9 million. Positive inflows were also recorded in transport equipment, textiles, trade and tourism.
Meanwhile, the mining and quarrying, food, cement and construction sectors registered net capital outflows, indicating that foreign investment remained concentrated in a limited number of industries despite China’s continued role as Pakistan’s largest and most reliable investment partner.