Pakistan received $719.7 million in net foreign direct investment during the first three months of the 2026–27 financial year, an increase of nearly 20% from the same period last year.
State Bank of Pakistan figures show higher overall investment inflows, although growth varied significantly between industries.
What the latest figures show
Net foreign direct investment reached $719.7 million between July and September 2026, compared with $600.4 million a year earlier.
Net FDI measures investment entering the country after relevant investment outflows have been deducted. It differs from investment commitments announced by companies or government officials.
September accounted for $219.5 million in net FDI, compared with $315.9 million in August. Monthly flows can fluctuate when large investments or withdrawals occur.
Which sectors attracted investment?
Financial services received approximately $191.3 million during the quarter, compared with $137.6 million a year earlier.
The power sector attracted about $139.4 million, up from $105.6 million in the corresponding period of FY2026.
Mining and quarrying recorded approximately $102.7 million during July–September, down from $198.5 million a year earlier, despite receiving $62.6 million in September alone.
Investment in automobile-related manufacturing also improved, with reported net inflows of around $35 million during the quarter.
The differences between these industries help explain why an increase in overall investment does not tell the full story of how foreign capital is distributed.
Where is the money coming from?
Canada and China were the two largest recorded sources of net FDI in the first quarter.
Investment attributed to Canada reached approximately $229.2 million, compared with $224.9 million a year earlier. China contributed around $197.5 million, up from $121.3 million.
Other major sources included the United Kingdom, the United Arab Emirates and Hong Kong.
Country totals identify the recorded sources of investment, but individual project disclosures are needed to establish precisely where the funds were deployed.
Why the sector mix matters
Foreign investment can support business expansion, infrastructure and employment, but its economic effects depend on the projects receiving the money.
Funding an existing operation has different effects from building a new export-oriented factory. Investment in electricity generation also has different implications from investment in manufacturing or technology.
Pakistan’s first-quarter figures show an improvement in net inflows, with much of the investment continuing to go to a relatively small number of sectors.
Further quarterly releases will show whether the gains spread into more industries and remain sustained through FY2027.
Sources: State Bank of Pakistan economic data; The News, October 17, 2026; Business Recorder, October 20, 2026.