Foreign direct investment in Pakistan dropped 45% in February

Foreign direct investment (FDI) in Pakistan fell sharply in February. The State Bank reported a 45 percent decrease year-on-year, bringing the total to $95 million for the month. Despite this drop, FDI from July to February of fiscal year 2025 increased by 41 percent. The total for this period reached $1.618 billion, up from $1.147 billion last year. The government aims to attract more foreign investments. However, rising terrorism is hurting Pakistan's reputation and scaring off potential investors. Experts believe that the uncertain economic and political situation will hinder further investments. Pakistan struggles to privatize its failing state-owned companies due to ongoing instability. China remains the largest investor, contributing $662 million out of the total $1.6 billion FDI in the first eight months of FY25. Other significant contributions came from Hong Kong, the UK, and the US, at $160 million, $167 million, and $68 million, respectively.