China leads FDI in Pakistan with net inflow of $114m in December

China emerged as the largest investor in Pakistan in December 2025, with a net direct investment of $114.1m, followed by the Netherlands and Hongkong which invested $22m and $20.5m respectively, according to the data issued by the State Bank of Pakistan (SBP).

During 6MFY26, China remained the largest investor, followed by Hongkong and the U.A.E with net FDI of $422.9m, $163.8m, and $112.2m respectively.

It is pertinent to note that the total FDI in 6MFY26 stood at $808.1m, down 43.28% YoY compared to FDI of $1.42bn in 6MFY25.

China held the majority proportion (52.33%) of direct investments in the country during 6MFY26, however, investment from the respective country has declined substantially by 41.56% YoY when compared with the figure of $723.7m in 6MFY25.

Hongkong’s contribution in net FDI stood at $163.8m (20.27%) in the 6MFY26, down by 34.72% YoY compared to $250.9m in SPLY.

The third major investor during 6MFY26, U.A.E’s share was 13.88% with a direct investment of $112.2m, declining by 30.7% YoY.

Other major important investors were the Switzerland, Others and United Kingdom with a net FDI of $106.8m, $77.9m, and $55.6m respectively during 6MFY26.

The Foreign Portfolio Investment (FPI), which represents an investment in the equity market (both direct and indirect) during December stood at positive $13.1m.

On a cumulative basis, FPI showed an divestment of $600.6m during 6MFY26, against a divestment of $81.8m in the SPLY.

The Others emerged as the biggest portfolio investor during the month, as it invested $2.2m during the month and $21.5m during 6MFY26.

The total foreign investment in the review month clocked in at $-121.6m

On a cumulative basis, within 6MFY26, total foreign investment was reported at $207.4m as compared to foreign investment of $1.34bn incurred in the corresponding period last year.