FDI recovery remains elusive

Business Recorder reported that Pakistan opened FY27 with net foreign direct investment of $178.6 million in July, a rebound from only $13.5 million in June. The publisher noted that June had been an unusually poor month, so the jump looks less impressive than it first appears. Even so, inflows in July were 20 percent lower than a year earlier.

Power drew $57.5 million and financial services attracted $62.3 million, keeping both sectors at the head of the recipient list. Canada and China were the leading originators of the inflows, with China still a notable contributor. The piece argues that the problem lies not just in the amount but also in where the money originates and where it ends up.

The piece contrasts this with rivals such as India, Vietnam, Malaysia and Indonesia, which are pulling capital into technology, export factories, electronics and mineral processing. Pakistan still relies on projects tied to domestic demand, regulated industries and state-backed schemes. With local private firms adding little pull and taxation, energy costs, security and contract enforcement still weighing on business, the outlook is described as cautiously stagnant.