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Pakistan’s net Foreign Direct Investment fell sharply to $54 million in April 2026, down 68 percent from $168 million in March, largely due to major outflows from Lebanon in the cement sector, according to a brokerage report based on State Bank of Pakistan data.

The latest figure marks one of the weakest monthly FDI inflows in recent months and underlines the continued fragility of Pakistan’s external investment position despite ongoing economic stabilization efforts under the IMF programme.

During the first 10 months of FY2026, net FDI stood at $1.409 billion, showing a 31 percent decline compared to the same period last year.

China, Hong Kong, and the United Arab Emirates remained the leading sources of foreign investment in April, while the power sector and financial businesses attracted the highest inflows during the month.

The data indicates that foreign investment flows have remained volatile over the past three years, with monthly inflows fluctuating sharply due to political uncertainty, external financing challenges, exchange rate pressures, and shifting global investment conditions.

Pakistan has been trying to attract fresh foreign investment through privatization plans, initiatives under the Special Investment Facilitation Council, agreements with Gulf countries, and IMF-backed structural reforms aimed at improving macroeconomic stability and rebuilding investor confidence.

Analysts expect Pakistan’s total FDI for FY2026 to reach around $2 billion.

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