Pakistan recorded a net foreign direct investment (FDI) inflow of $219.5 million in September 2026, marking an increase of 18.5% compared with $185.3 million in the same month last year, according to the latest data released by the State Bank of Pakistan. The figures indicate an improvement in direct investment inflows during the month, as foreign investors continued to contribute capital to the country’s economy.
According to the central bank’s data, Pakistan received gross foreign direct investment inflows of $292.7 million in September, while investment outflows amounted to $73.2 million. After accounting for these outflows, the country recorded a net FDI inflow of $219.5 million. The year-on-year increase suggests stronger net direct investment compared with September 2025, although the monthly figures alone do not establish whether the trend will continue over the coming months.
Foreign portfolio investment followed a different pattern during September, recording a net outflow of $26.9 million. Portfolio investment generally reflects foreign investors’ transactions in financial assets such as shares and debt securities, while direct investment is associated with longer-term business interests. After including the portfolio outflow, total foreign private investment stood at $192.6 million during the month.
Foreign public investment provided a significantly larger contribution to the overall investment position in September. The category, which consisted entirely of investment in debt securities, recorded an inflow of $2.891 billion. As a result, Pakistan’s total foreign investment reached $3.084 billion during the month. This represented a substantial improvement compared with September last year, when the country recorded an overall net foreign investment outflow of $361.5 million.
The cumulative figures for the first quarter of fiscal year 2027 also showed an increase in foreign direct investment. Pakistan received net FDI of $719.7 million during July to September 2026, up 19.9% from $600.4 million in the corresponding period of the previous fiscal year. The increase indicates that net direct investment remained higher on a year-on-year basis throughout the first three months of FY27.
Gross FDI inflows during the July to September period reached $967.7 million, compared with $806.5 million in the same period of FY26. Investment outflows also increased, reaching $248 million against $206.2 million a year earlier. Despite the higher outflows, the rise in gross inflows resulted in a stronger net direct investment position during the quarter.
Foreign portfolio investment continued to register net outflows on a cumulative basis, amounting to $28.6 million in the first quarter of FY27. This was lower than the $121.5 million net outflow recorded during the corresponding period of FY26, reflecting a smaller net withdrawal from portfolio investments compared with a year earlier.
Total foreign private investment reached $691.1 million during the first quarter, increasing from $478.8 million in the same period of the previous fiscal year. The improvement was supported by higher direct investment, which more than offset the net outflow recorded in portfolio investment. Meanwhile, foreign public investment reached $2.961 billion during July to September FY27, compared with a net outflow of $511.8 million in the corresponding period last year.
These developments lifted Pakistan’s total foreign investment to $3.652 billion during the first quarter of FY27, compared with a net outflow of $32.9 million in the same period of FY26. The shift reflects the combined impact of higher foreign direct investment and a substantial inflow of foreign public investment in debt securities.
The latest figures present a mixed picture of foreign capital entering Pakistan. Direct investment recorded year-on-year growth both in September and during the first quarter, while portfolio investment remained negative but showed a smaller outflow than in the previous year. The strong contribution from foreign public investment also played a major role in lifting the overall investment total. Continued monitoring of these categories will help establish whether the improvement in direct investment can be sustained and how foreign capital flows develop during the remaining months of FY27.
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