China Leads Foreign Direct Investment Surge in Pakistan

CT Report

ISLAMABAD: Pakistan’s foreign direct investment (FDI) landscape is witnessing a significant shift, with China emerging as the dominant player.

In the first quarter of the fiscal year 2024-25, the country attracted an impressive $404 million from Chinese investors, marking a striking 164% increase from $163.9 million during the same period last year.

Data released by the State Bank of Pakistan (SBP) reveals that the total FDI influx for July to September 2024 reached $903.5 million, with China contributing nearly 45% of this amount. September alone saw a robust inflow of $224.8 million from China, underscoring its pivotal role in Pakistan's investment ecosystem.

Hong Kong also played a significant part, with contributions amounting to $101.7 million. Other notable investors included the United Kingdom ($79.8 million), Switzerland ($32.9 million), Sweden ($30 million), and the United Arab Emirates ($25.5 million), demonstrating a diverse international interest in Pakistan’s economy.

The power sector emerged as the leading beneficiary of this FDI surge, attracting a total of $416.3 million. Within this sector, hydel power projects were particularly appealing, securing $334.4 million, followed by coal ($55.9 million) and thermal power ($25.9 million).

This robust investment trend not only highlights China’s commitment to Pakistan but also reflects growing international confidence in the country’s economic potential.