ISLAMABAD: China’s net foreign direct investment (FDI) in Pakistan has soared by 90.4%, reaching $1.22 billion in fiscal year 2024–25, up from $643.2 million recorded in FY 2023–24.
According to data released by the State Bank of Pakistan (SBP) and reported by Gwadar Pro, this surge in investment highlights China’s increasing role as one of Pakistan’s largest foreign investors.
In June-July FY 2025, Pakistan received a total inflow of $1.71 billion from China, with $485.5 million in outflows, resulting in a net inflow of $1.22 billion.
For the entire fiscal year 2024-25, Pakistan’s total FDI from all partner countries amounted to $2.46 billion, with 49.9% of it coming from China, solidifying its position as one of Pakistan’s top investors.
Other notable investors included Hong Kong ($470.1 million), the UAE ($283.1 million), Switzerland ($203.3 million), the United Kingdom ($201.8 million), and South Korea ($96.2 million). In June 2025, the last month of FY 2025, China contributed $49 million in net FDI, with $39.1 million in outflows.
The largest sector receiving Chinese FDI in FY 2024-25 was the power sector, which saw an inflow of $1.17 billion, including $759.4 million in hydel power projects. The financial services sector also attracted significant investment, with $702.2 million in net FDI.
Other sectors such as electricity machinery, oil and gas exploration, electronics, IT, food, petroleum refining, and textiles also received substantial investments from China.
This sharp rise in Chinese FDI reflects growing confidence in Pakistan’s market and the continued expansion of the China-Pakistan economic relationship, including in key sectors such as energy, infrastructure, and technology.
