Pakistan received a promising boost in its economic indicators as Foreign Direct Investment (FDI) surged past $200 million in July 2025, according to the latest report by the State Bank of Pakistan (SBP). This marks a significant uptick compared to the same period last year and is viewed as a sign of recovering investor confidence.
The report reveals that the total FDI inflow reached $215.7 million, with major contributions coming from countries like China, the United States, the Netherlands, and the UAE. Sectors attracting the highest investment include telecommunications, renewable energy, financial services, and manufacturing.
China remained the top investor, primarily due to ongoing China-Pakistan Economic Corridor (CPEC) projects, while the UAE directed funding toward real estate and infrastructure ventures. American firms also made fresh investments in technology and financial services, signaling an emerging diversification in Pakistan’s investment profile.
Government officials credited the improved performance to policy reforms, simplified investment procedures, and efforts by the Board of Investment (BOI) to facilitate ease of doing business. The recent formation of special economic zones (SEZs) under CPEC has further encouraged foreign entities to consider long-term commitments.
Experts view this FDI surge as a crucial step in stabilizing Pakistan’s external account position, especially during a time of global economic uncertainty. However, they also caution that political stability, consistency in policy, and improved law and order conditions are necessary to sustain this positive momentum.
If current trends continue, Pakistan could exceed its annual FDI target of $2 billion, a goal set under its medium-term economic framework.
SBP report, CPEC investment, economic growth Pakistan
