Pakistan recorded a significant decline in foreign direct investment (FDI) during the first ten months of the current fiscal year, according to data released by the State Bank of Pakistan.
The central bank reported that foreign direct investment fell by 31 percent compared to the same period of the previous fiscal year. Pakistan received $1.41 billion in FDI during the first ten months of the current fiscal year, compared to $2.04 billion during the corresponding period last year.
The report also showed weak inflows in foreign private investment. According to the data, foreign private investment stood at $859 million during the ongoing fiscal year, sharply lower than the $1.75 billion recorded in the same period of the previous fiscal year.
Meanwhile, foreign government investment witnessed a substantial net withdrawal of $828 million during the ten-month period.
Overall, the country’s total foreign investment volume dropped drastically to only $32 million, compared to $1.46 billion in the corresponding period last year.
The report further noted a reduction in portfolio investment withdrawals. During the current fiscal year, $290 million exited the country under portfolio investment, compared to withdrawals of $550 million during the same period last year.
Economic experts attributed the decline in investment to economic uncertainty, inconsistent policies, and global financial pressures. Analysts said investor confidence had weakened amid concerns over policy continuity and macroeconomic stability.
Economists stressed that restoring investor confidence and ensuring long-term economic stability were essential to improving investment trends in the country. They also emphasized that consistent economic policies and structural reforms would be necessary to attract sustainable foreign investment in the future.