Pakistan’s net foreign direct investment (FDI) recorded a strong rebound in May 2026, rising to $214 million — a sharp 293% increase compared to $55 million in April, according to data released by the State Bank of Pakistan.

Despite the monthly surge, FDI remained 8% lower on a year-on-year basis compared to May 2025.

Analysts at Topline Securities attributed the weak April performance to capital outflows in the cement sector, particularly linked to Attock Cement’s divestment.

During the first 11 months of FY26, net FDI stood at $1.623 billion, reflecting a 28% decline compared to the same period last year.

On a country basis, the main sources of investment during May included China, the United Arab Emirates, and Hong Kong.

Sector-wise, the power sector and financial businesses attracted the highest share of foreign investment during the month.

Overall foreign investment — which includes both private and public inflows — surged 336% year-on-year in May to $446 million. However, cumulative foreign investment for 11MFY26 dropped 69% to $478 million compared to $1.56 billion in the same period of FY25.