Foreign Direct Investment (FDI) in Pakistan saw a marginal increase in fiscal year 2024–25, reaching $2.46 billion, up from $2.35 billion in FY24. This represents a 4.67% year-on-year growth, signaling only a slight upward trend in investor confidence.

While any increase in FDI is generally a positive indicator for a developing economy, this modest uptick falls short of expectations. Experts argue that the rise is not substantial enough to suggest a meaningful recovery in foreign investment flows.

The economic landscape remains challenging due to structural issues, policy uncertainties, and global market volatility. Analysts believe that to attract robust foreign investment, Pakistan must implement long-term reforms, enhance regulatory transparency, and improve ease of doing business across key sectors.

Despite government efforts to incentivize foreign participation in energy, infrastructure, and technology sectors, investor sentiment remains cautious. Market watchers stress the importance of macroeconomic stability and consistent policies to secure stronger FDI performance in future fiscal periods.

As FY26 begins, attention is focused on whether the current momentum can be accelerated through strategic reforms and improved investor outreach programs.