China emerged as the leading source of foreign direct investment (FDI) in Pakistan during the first quarter of Fiscal Year 2026, with net inflows of $188.6 million, accounting for 33.15% of the country’s total net FDI of $568.8 million, Gwadar Pro reported quoting the latest data released by the State Bank of Pakistan (SBP).

Hong Kong Special Administrative Region (HKSAR) of China followed with an additional $96 million, consolidating the overall Chinese footprint as the dominant foreign investor group during the July–September period. Other major contributors included Switzerland ($55.2 million), the United Kingdom ($53.9 million), the UAE ($50.1 million), and Canada ($38.2 million).

In September 2025, China once again led the monthly inflows with $68.2 million, followed by Hong Kong ($35.9 million) and the United Kingdom ($30 million). Total net FDI for the month stood at $185.6 million. Sector-wise data highlights that electricity, gas, steam, and air conditioning supply attracted the highest net FDI at $255.2 million during Q1 FY2026, nearly half of Pakistan’s total FDI inflows in the quarter.

This is a traditional focus of Chinese investors under the China-Pakistan Economic Corridor (CPEC), with several energy projects either operational or under construction. The manufacturing sector followed with net FDI of $84.5 million, while construction received $39 million. Wholesale and retail trade drew $11.5 million, and agriculture registered $1.15 million in net inflows. The mining sector posted net outflows of $18.1 million, while information and communication recorded a negative balance of $17.4 million.

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