Pakistan FDI Drops 91% to $25.75 Million April

Pakistan faced a drastic 91% year-on-year decline in foreign direct investment, recording a mere $25.75 million in April 2025, down from $294.17 million in April 2024, according to the State Bank of Pakistan’s data released on May 16, 2025, signaling deep investor caution. The month-on-month drop from $385 million in March 2025 further underscores mounting uncertainties in the geopolitical and macroeconomic landscape.

Despite this, the first 10 months of fiscal year 2025 saw cumulative foreign direct investment rise modestly to $1.64 billion, up from $1.44 billion in the same period of fiscal year 2024, driven by earlier inflows that have now slowed significantly. April’s inflows of $176.55 million were overshadowed by a massive outflow of $150.8 million, a 200%+ year-on-year increase in capital flight, fueling the net investment slump. Portfolio investments recorded an outflow of $15.32 million in equity securities, reversing last year’s $18.63 million inflow, while foreign private investment plummeted to $10.43 million from $312.8 million, and foreign public investment saw a $116.08 million outflow, leading to a total divestment of $105.65 million against last year’s $347.33 million inflow.

Total foreign investment for the first 10 months dropped to $1.3 billion, down from $1.6 billion in fiscal year 2024, reflecting growing risk aversion amid policy ambiguity, regulatory uncertainty, and external financing challenges. Despite International Monetary Fund engagement, web context shows historical foreign direct investment struggles, and posts found on X echo investor fears over political instability, as seen in a recent post noting a decline to $140.8 million in April 2025. Critically, the narrative of “improving indicators” may mask systemic issues—web sources highlight persistent low foreign direct investment, and X sentiment questions reform effectiveness, suggesting a bleak investment outlook without clearer policies.