China emerged as a major source of foreign direct investment (FDI) in Pakistan during the first quarter of fiscal year 2026-27, contributing $197.5 million, accounting for 27.4 percent of the country’s total net FDI of $719.7 million, Gwadar Pro reported on Tuesday.

According to the latest provisional data released by the State Bank of Pakistan (SBP), China was Pakistan’s largest source of net FDI among individual countries during July-September FY27, with its net investment increasing by $76.2 million, or 62.8 percent, from $121.3 million in the corresponding quarter of FY26.

Its share of Pakistan’s net FDI consequently rose from approximately 20.2 percent to 27.4 percent.

Pakistan’s overall net FDI increased by $119.3 million, or 19.9 percent, year-on-year, from $600.4 million in the first quarter of FY26 to $719.7 million in the same period of FY27. China’s increase accounted for nearly 64 percent of the overall rise.

Chinese investors recorded FDI inflows of $295.5 million and outflows of $98 million during the first quarter of FY27.

In the corresponding period of FY26, inflows stood at $209.6 million and outflows at $88.3 million.

By sector, financial business attracted the highest net FDI at $191.3 million, followed by power at $139.4 million, trade at $115.7 million and mining and quarrying at $102.7 million.

Other sectors receiving net investment included transport equipment (automobiles) at $35 million, electronics at $21.7 million, electrical machinery at $20.1 million, food at $14 million, information technology at $11.1 million, communications at $8.3 million and textiles at $5.6 million.

Credit: Independent News Pakistan (INP) — Pak-China