China emerged as Pakistan’s top foreign investor during July-August FY2025, contributing $120 million—or nearly 33%—of the country’s total $364.3 million net FDI, according to the State Bank of Pakistan. In August alone, China accounted for a striking 43.9% of inflows, with $68.6 million invested. The power sector led in attracting foreign investment with $156.9 million, followed by financial services and electrical machinery. Other key investors included the UAE, UK, Switzerland, and the US, but China maintained its dominant position. The FDI surge comes amid renewed momentum from top-level visits, with Prime Minister Shehbaz Sharif securing $8.5 billion in deals and President Zardari overseeing MoUs in agriculture, training, and environmental sectors.
Analysts say the steady Chinese inflows reflect deepening investor confidence as CPEC enters its second phase. Officials expect further boost in investment across energy, industry, and technology in the coming months.
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