Pakistan saw a 16.5% increase in foreign investment during the first 10 months of the 2024–25 fiscal year, reaching a total of $1.20 billion. The rise comes at a time when the country is seeking to boost investor confidence amid ongoing economic reforms and global challenges.
However, foreign investment in the private sector declined by 22%, dropping to $1.49 billion during the same period. Experts believe that concerns over regulatory hurdles and market uncertainty may have caused the slowdown in private capital inflows.
Meanwhile, foreign direct investment (FDI) also dipped slightly, falling by 2.8% to $1.78 billion in the first ten months. This decrease highlights the ongoing need for structural reforms and incentives to attract long-term foreign partners.
In contrast, the stock market witnessed an outflow of $290 million, reflecting cautious behavior from foreign investors. Many are waiting for signs of political and economic stability before reinvesting in capital markets.
Additionally, foreign investment in the public sector fell by $285.5 million during this period. This decline may be linked to reduced government borrowing and fewer large-scale infrastructure projects involving foreign funding.
Overall, while total foreign investment showed a positive trend, the mixed performance across sectors signals that Pakistan still has work to do. Policy reforms, consistent economic policies, and investor-friendly regulations could help sustain and grow this momentum.