Foreign Investment in Pakistan Rose to $494.5 Million in July and August 2026, With China Leading

Foreign companies put a net $494.5 million into Pakistan in July and August 2026, up 24 per cent from $398.6 million a year earlier. China supplied $176.2 million of it, about 36 per cent. These are the State Bank of Pakistan's (SBP) provisional figures, published on 16 September 2026.

Update, 11 October 2026: SBP data also shows foreign investors' net SCRA inflow since July.

Update, 11 October 2026: The CPEC 2.0 joint statement of May 2026 is explained separately.

Foreign direct investment, or FDI, means a foreign firm or person buys a lasting stake in a Pakistani business, such as a factory, a bank or a telecom company. It is different from a loan. A loan must be repaid. An investment brings the owner a share of profit instead. That is why FDI matters for jobs and for the dollar.

We downloaded the SBP's two foreign investment tables and read every figure below. Here is what they show, and how to read them yourself.

Net foreign direct investment rose 24 per cent in two months

Net FDI is money coming in, minus money foreign owners took out. The SBP's table shows inflows of $705.9 million and outflows of $211.5 million in July and August, which leaves $494.5 million. A year earlier the inflow was $596.4 million and the outflow $197.8 million.

August alone was stronger than July. Net FDI was $315.9 million in August, against $175.1 million in August 2025. Total foreign investment, including shares and government securities, reached $562.2 million in the two months, almost double the $312.0 million of a year earlier.

China supplied $176.2 million, more than any other country

The SBP lists net FDI by country. China was first by a wide margin. Its inflow was $238.0 million, and Chinese owners took out $61.8 million, which leaves $176.2 million. Canada came second.

Those six countries account for $427.5 million, about 86 per cent of the total, by our sum. Hong Kong and Switzerland fell against last year. China, Canada, the UAE and the UK rose.

Two months do not make a trend after a weak FY26

The full FY26 year was weaker. Net FDI was $1,672.3 million, down from $2,477.3 million in FY25, a fall of about 32 per cent. Foreign investors also pulled $594.8 million out of Pakistani shares in FY26. Total foreign investment for the year was $486.1 million, against $1,746.5 million the year before.

So the July and August rise is a good start, not a turnaround. FDI is lumpy. One large project can swing a month. The next SBP release, expected around mid-October, will show whether September kept the pace. The same release also carries the current account, which we explain in our report on Pakistan's July and August current account.

What FDI means for you

More FDI means more dollars arrive without adding to debt. It supports the rupee and the reserves. Over time it can bring new factories, jobs and exports, though a single month tells you little about that.

• For workers: new plants and expansions hire people. Look for projects in your city, not only the national total.
• For savers and borrowers: steadier dollar inflows reduce pressure on the rupee, which helps keep import prices from jumping.
• For the government: investment helps the credit ratings, which sit in the single B band, as set out in our credit rating explainer.

How to read the SBP foreign investment tables

1. Open sbp.org.pk and go to Publications and Data, then Economic Data.
2. Find "Summary of Foreign Investment in Pakistan" for the totals.
3. Find "Foreign Investment in Pakistan by Countries and Sectors" for the country table.
4. Read the header. "P" means provisional, so figures can change.
5. Remember "net" means inflow minus outflow. Brackets or a minus sign mean money left.

The SBP says "0" means less than $50,000 and "-" means nil. For the other monthly numbers, see our steps for the official SBP and Bureau of Statistics pages.

Common questions

How much FDI came into Pakistan in July and August 2026?

A net $494.5 million, by the SBP's provisional table. Gross inflow was $705.9 million.

Which country invested most?

China, with a net $176.2 million, about 36 per cent of the total. Canada was second at $87.0 million.

Is FDI the same as a foreign loan?

No. A loan must be repaid with interest. FDI buys a stake in a business, and the owner is paid from profits.

Why did FDI fall in FY26?

The SBP table shows it fell from $2,477.3 million to $1,672.3 million. The table does not give reasons, so we do not guess.

When is the next figure due?

The SBP gives no date we could confirm. Past releases came mid-month, so mid-October is likely.

How we verified this

What we checked, where we read it, and what we could not confirm.

Last checked 11 October 2026, about 5 am PKT. We read the SBP's Economic Data page and downloaded its "Summary of Foreign Investment in Pakistan" and "Foreign Investment in Pakistan by Countries and Sectors" tables, both dated 16 September 2026, and its Balance of Payments summary for the matching direct investment line. Percentages, shares and the six-country total are our own arithmetic.