China remains largest source of FDI in Pakistan in Jan 2026

ISLAMABAD: China remained the largest source of foreign direct investment (FDI) in Pakistan, contributing net FDI of US$ 72.6 million in January 2026, accounting for 41.9% of the country’s total net inflows of US$ 173.3 million during the month.

In January, Pakistan received US$ 98.8 million in inflows from China, while US$ 26.2 million was recorded as outflow, bringing net FDI from China to US$ 72.6 million. During the first seven months from July to January in FY 2025-26, Pakistan received total FDI inflows of US$ 2,078.7 million (US$ 2.08 billion), while outflows stood at US$ 1,097.4 million (US$ 1.10 billion), resulting in net FDI of US$ 981.4 million, according to SBP data.

China remained the leading investor during this period, contributing US$ 495.5 million and accounting for 50.4% of Pakistan’s total net FDI, Gwadar Pro reported. Other major contributors included the United Arab Emirates with US$ 126.2 million, Switzerland with US$ 124.2 million and the United Kingdom with US$ 64 million.

Sector-wise, water supply, sewerage, waste management and remediation activities attracted the largest share of net FDI at US$ 566.9 million during July-January FY2026. Financial and insurance activities received US$ 470.5 million, followed by manufacturing with US$ 234.5 million and professional, scientific and technical activities with US$ 65.2 million.

However, overall net FDI declined compared with the same period of the previous fiscal year. Pakistan recorded net FDI of US$ 1,483.7 million (US$ 1.48 billion) during July-January FY2024-25, which is 33.9% higher than the net inflows recorded during the current fiscal year. Staff Report