FDI inflows drop 33pc in July-February

KARACHI: Foreign direct investment (FDI) fell by 33 per cent to $1.195 billion during the first eight months of the current fiscal year (FY26), with inflows largely dominated by China.

It is important to note that the State Bank’s data reflects the pre-war situation and does not capture the potential impact of the conflict on foreign investment. Although Pakistan is not directly part of the Gulf war, its economic repercussions have already begun to affect the country. The 33pc decline in FDI — even before the war began on Feb 28 — is seen as disappointing for the government, which has been seeking to attract large-scale foreign investment across sectors ranging from industry and agriculture to services.

According to the State Bank, FDI in February stood at $213 million, of which $140m, or 66pc, came from China. During July-February FY26, total FDI amounted to $1.195bn compared to $1.793bn in the same period last fiscal........

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