Pakistan Attracts $208M FDI in July 2025 — China Leads, Power Sector Dominates

Article

Pakistan recorded a net Foreign Direct Investment (FDI) inflow of $208 million in July 2025, marking a 7% year-on-year increase from $195 million in July 2024. This rise was driven by stronger gross inflows and continued interest from overseas investors in energy and financial projects. State Bank of PakistanProPakistani

Gross FDI inflows totalled $317 million in July 2025, up 11% from $285 million a year earlier, while outflows rose to $109 million (up 21% year-on-year). The gap between inflows and outflows resulted in the $208 million net figure — a modest but meaningful improvement that reinforces the gradual recovery of foreign private capital into Pakistan. State Bank of PakistanProfit by Pakistan Today

Country-wise, China remained the largest investor in July with $51 million, followed by Hong Kong ($30m), Switzerland ($21m), the UAE ($20m) and the UK ($17m). The continuing prominence of Chinese investment highlights deepening bilateral economic links and the ongoing role of China-Pakistan projects in attracting capital. Mettis GlobalProPakistani

By sector, the power sector led FDI absorption with $70 million, while the financial business sector received about $59 million—together accounting for the lion’s share of July’s inflows. Investment in power reflects both new generation and grid-related projects, and the financial sector interest signals confidence in banking, insurance, and financial-services expansions. Mettis Global+1

What this means for Pakistan’s economy: while $208 million is modest relative to Pakistan’s financing needs, the month’s figures represent encouraging signs of investor confidence returning to priority areas such as energy and finance. Sustaining and scaling this momentum will depend on consistent policy signaling, infrastructure project delivery, and a stable macroeconomic framework that reassures both strategic and portfolio investors. Business RecorderUN Trade and Development (UNCTAD)

Policy note

Policymakers and economic managers can amplify these gains by accelerating clear approvals for energy projects, ensuring transparent procurement, and continuing reforms to strengthen the investment climate. Public-private cooperation and targeted incentives for sectors that create jobs and transfer technology will also help convert inflows into long-term productive capital. State Bank of PakistanOpen Knowledge Repository

External links (for publication)

Add these authoritative links in your article to increase authenticity and give readers direct sources:

• State Bank of Pakistan — summary of foreign investment data. State Bank of Pakistan
• Business Recorder coverage on July FDI figures. Business Recorder
• ProPakistani summary article on July 2025 FDI. ProPakistani
• Profit / Pakistan Today analysis of the FDI uptick. Profit by Pakistan Today
• Mettis report on sector and country breakdowns. Mettis Global+1