China remained the largest source of foreign direct investment into Pakistan during August 2026, recording gross inflows of $134 million, according to provisional data released by the State Bank of Pakistan. After accounting for outflows of $21.1 million, China’s net foreign direct investment stood at $113 million during the month. The latest figures represent a significant increase from July and also show stronger investment compared with the same month of the previous year.
China’s net FDI increased by 78.80% month-on-month from $63.2 million in July 2026. On a year-on-year basis, the increase reached 63.77% compared with net FDI of $69 million recorded in August 2025. The improvement in China’s net investment position was supported by higher gross inflows as well as a reduction in outflows during August.
Gross FDI inflows from China increased to $134 million in August from $104 million in July, representing a month-on-month increase of 28.85%. Compared with $90.9 million recorded in August 2025, China’s gross inflows were also 47.42% higher year-on-year. At the same time, outflows from China declined to $21.1 million in August from $40.8 million in July, contributing to the stronger net investment figure reported by the central bank.
Pakistan’s overall net FDI also recorded a substantial increase during August. Net foreign direct investment reached $315.9 million, rising 76.88% from $178.6 million in July 2026. Compared with August 2025, when Pakistan recorded net FDI of $175.1 million, the latest figure was 80.41% higher. The monthly data therefore showed a broad increase in foreign investment, with several major sources recording stronger inflows during the period.
The United Arab Emirates recorded one of the sharpest improvements among Pakistan’s major FDI sources during the month. Gross inflows from the UAE nearly tripled to $52 million, while outflows stood at $4.1 million. This resulted in net FDI of $47.9 million, compared with $10.2 million in July. UAE net FDI consequently increased by 369.61% month-on-month and was 199.38% higher than the $16 million recorded in August 2025.
Canada recorded the second-largest net FDI contribution among the sources highlighted in the August data. Gross inflows from Canada amounted to $50 million, with no reported outflows, resulting in net FDI of the same amount. Canada’s net investment increased 35.14% month-on-month from $37 million in July. The year-on-year comparison was particularly notable, as net FDI from Canada had stood at only $0.1 million in August 2025.
Hong Kong recorded gross FDI inflows of $25.8 million during August, while outflows amounted to $1.9 million, leaving net FDI at $23.9 million. The figure was 18.32% higher than the $20.2 million recorded in July but remained 20.60% below the $30.1 million registered in August 2025. The data therefore reflected an increase on a monthly basis but a decline when compared with the same month of the previous year.
The United Kingdom posted gross inflows of $32.7 million and outflows of $19 million, resulting in net FDI of $13.7 million. The UK’s net investment declined 13.84% month-on-month from $15.9 million in July but increased 95.71% year-on-year from $7 million in August 2025. Switzerland, meanwhile, recorded gross inflows of $18.6 million and outflows of $2.8 million, bringing its net FDI to $15.8 million. Swiss net investment declined 5.95% from $16.8 million in July and was 8.14% lower than the $17.2 million recorded a year earlier.
The August figures show that China’s investment continued to account for the largest contribution among Pakistan’s foreign investment sources, while stronger monthly inflows from China, the UAE and Canada supported the overall increase in Pakistan’s net FDI. At the same time, the mixed performance of Hong Kong, the United Kingdom and Switzerland demonstrates that investment trends varied across individual sources during the month.
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