By Moaaz Manzoor

Total cash flow on foreign investment into Pakistan increased to $172.04 million in April 2026, supported by higher foreign direct investment (FDI) and improved portfolio inflows, according to data released by the State Bank of Pakistan (SBP).

The latest SBP statistics showed that total cash flow on foreign investment in Pakistan rose from $102.42 million in March 2026 to $172.04 million in April. However, the figure remained below the $281.44 million recorded in November 2025.

Foreign direct investment continued to account for the largest share of total inflows. Total cash flow on FDI reached $157.2 million in April, compared with $96.85 million in March and $48.25 million in February 2026, indicating a steady increase in investment activity over recent months.

Portfolio investment also improved during the review period. Total portfolio inflows increased to $14.84 million in April from $5.57 million in March, reflecting relatively stronger investor participation in domestic financial assets.

Sector-wise data showed manufacturing remained among the leading destinations for foreign investment. The sector attracted $45.22 million in April 2026 compared with $43.73 million in March.

Financial and insurance activities recorded a substantial increase in inflows, rising to $72.47 million in April from $30.78 million a month earlier, making it one of the strongest-performing sectors during the period under review.

Investment in the information and communication sector also strengthened, reaching $15 million in April compared with $1.22 million in March, indicating renewed investor interest in digital and communication-related activities.

Similarly, wholesale and retail trade, including the repair of motor vehicles and motorcycles, attracted $26.46 million during April, significantly higher than the $0.25 million recorded in March.

However, investment inflows into some sectors softened during the month. Mining and quarrying received $2.72 million in April compared with $17.16 million in March, while inflows into the transportation and storage sector declined to $1.93 million from $3.57 million.

The electricity, gas, steam and air-conditioning supply sector also recorded lower inflows, easing to $3.76 million in April from $4.67 million in March and $38.91 million in January.

SBP data further showed continued repatriation of profits and dividends by foreign investors across multiple sectors. In manufacturing, repatriation of profits and dividends on FDI stood at $44.34 million in April, while the financial and insurance sector recorded repatriation of $63.54 million.

Profit repatriation in the information and communication sector also increased to $15 million during April from $1.22 million in March.

At the aggregate level, foreign investment flows showed signs of recovery after slowing in recent months amid global economic uncertainty, tighter financial conditions and cautious investor sentiment toward emerging markets.

The improvement in April coincided with relative macroeconomic stability, easing exchange-rate pressures and improving external-sector indicators in Pakistan.

The latest SBP data suggest that foreign investment activity remained uneven across sectors. However, stronger inflows into manufacturing, financial services and communication-related activities helped support the overall investment trend during the month.

Credit: INP-WealthPk