Foreign direct investment (FDI) in Pakistan increased sharply to $179 million in July 2026, recording a 264% month on month rise from the previous month, according to data released by the State Bank of Pakistan (SBP). The July inflow marked the first month of FY2026-27 and represented a substantial improvement compared with the $49 million recorded in June 2026.
Despite the strong monthly increase, foreign direct investment remained below the level recorded a year earlier. FDI in July 2026 was 20% lower than the inflow recorded during July 2025, indicating that Pakistan continued to face challenges in attracting new foreign capital despite the significant month on month improvement.
The power and financial services sectors attracted the largest portions of foreign investment during the month. According to analysis by Topline Securities, the power sector received $57.5 million in FDI during July. This compared with $86.8 million received in June 2026 and $70.8 million recorded in July 2025.
Although the power sector remained one of the largest recipients of foreign investment, its July inflow was lower than both the preceding month and the corresponding month of the previous year. The sector’s $57.5 million inflow accounted for a substantial share of the total $179 million received by Pakistan during the month.
Financial services attracted $62.3 million in foreign direct investment in July, making it the largest recipient among the sectors highlighted in the latest data. The amount was lower than the $87 million recorded in June, but higher than the $58.8 million received in July 2025.
The performance of the financial services sector therefore showed a different pattern from the overall monthly FDI movement. While investment declined compared with June, the sector recorded year on year growth, increasing from $58.8 million in July 2025 to $62.3 million in July 2026.
China and Canada emerged as the leading sources of foreign investment during the month. Their contributions formed a significant portion of the fresh capital entering Pakistan during the first month of FY27, with investment activity spread across sectors including power and financial services.
Topline Securities attributed part of the sharp month on month increase in overall FDI to the impact of outflows recorded in some electronics and food sectors during the previous month. The relatively low June base consequently contributed to the large percentage increase recorded in July.
The latest figures indicate that while Pakistan recorded a considerable monthly improvement in foreign investment, the country remains under pressure to attract larger and more consistent volumes of fresh overseas capital. The 20% annual decline in July FDI highlights the difference between the strong monthly recovery and the broader year on year position.
The investment figures come against continued efforts to attract foreign investors and maintain the presence of international businesses operating in Pakistan. Foreign companies have continued to invest, reinvest and expand their operations despite economic challenges, according to the Overseas Investors Chamber of Commerce and Industry (OICCI).
A recent OICCI report stated that foreign companies had invested more than $23 billion in Pakistan over the past decade. The investment reflects the contribution of international businesses to various segments of the Pakistani economy and their continued involvement despite difficult economic conditions.
The latest FDI data also highlights the importance of the power and financial services sectors in Pakistan’s foreign investment landscape. Together, the two sectors attracted $119.8 million during July, accounting for a substantial portion of the country’s total monthly inflow.
The power sector received $57.5 million, while financial services attracted $62.3 million. The remaining FDI was distributed among other sectors of the economy.
Overall, Pakistan received $179 million in foreign direct investment in July 2026, marking a 264% increase from June but a 20% decline compared with July 2025. China and Canada were the leading sources of inflows, while power and financial services remained the key sectors attracting foreign capital during the opening month of FY27.
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