Pakistan’s Foreign Investment Crashes 94% in June
Pakistan’s net foreign direct investment (FDI) plunged 94 percent year-on-year to just $14 million in June 2026, as a sharp rise in profit repatriation offset fresh investment inflows, according to State Bank of Pakistan (SBP) data compiled by Arif Habib Limited.
The weak monthly performance capped a difficult fiscal year, with net FDI declining 34 percent to $1.64 billion in FY2025-26 from $2.48 billion a year earlier.
During June, gross FDI inflows stood at $294 million, down 6 percent from the same month last year. However, foreign investors repatriated $281 million, up 168 percent year-on-year and 248 percent compared with May, leaving net FDI at only $14 million.
For the full fiscal year, Pakistan received $3.57 billion in gross direct investment, a 16 percent decline from FY25, while investment outflows rose 8 percent to $1.93 billion.
Overall foreign investment, including portfolio flows, recorded a net outflow of $27 million in June, compared with a net inflow of $446 million in May.
For FY26, total foreign investment fell 74 percent year-on-year to $451 million, down from $1.75 billion in the previous fiscal year.
The data also showed private investment posted a net outflow of $595 million, while public investment recorded a net outflow of $591 million during FY26, reflecting weaker foreign investor appetite despite improving macroeconomic conditions.
