KARACHI: Foreign direct investment (FDI) plunged 45 per cent year-on-year to $95 million in February, reported the State Bank on Monday.

However, the FDI during July-February FY25 increased by 41pc to $1.618bn compared to $1.147bn a year ago.

The government is working to attract foreign investments, but the increasing terrorism is damaging the country’s image and discouraging potential investors.

The FDI is much less than that of the regional countries, and economic experts believe there is no chance for higher inflows in the current uncertain situation. Pakistan could not even privatise the loss-making state-owned enterprises due to unending economic and political uncertainty.

China has been the largest investor in Pakistan. Out of the total inflows of $1.6bn during 8MFY25, the Chinese investment was $662m, followed by $160m from Hong Kong.Other significant inflows of $167m and $68m were from the United Kingdom and the US, respectively.

Published in Dawn, March 18th, 2025