China remained the largest source of foreign direct investment (FDI) in Pakistan in May 2026, with net investment amounting to US$79.3 million, Gwadar Pro reported quoting the latest data released by the State Bank of Pakistan (SBP) on Wednesday.

The SBP data showed that Chinese investors brought US$90.4 million into Pakistan during the month, while US$11.1 million was recorded as outflow, leaving a net FDI inflow of US$79.3 million.

China accounted for nearly 37% of Pakistan’s total net FDI inflows during the month.

Overall, Pakistan recorded gross FDI inflows of US$295.1 million in May 2026, while US$80.8 million flowed out in the form of profit repatriation and other capital withdrawals. As a result, the country posted a net FDI inflow of US$214.3 million for the month.

Among other major investing countries, the United Arab Emirates recorded a net FDI inflow of US$50.5 million, followed by Hong Kong with US$27.1 million, Switzerland with US$17.4 million, and the United Kingdom with US$14.8 million.

During the first eleven months of FY2025-26 (July–May), China also retained its position as Pakistan’s largest foreign investor, with net FDI of US$819 million, based on inflows of US$1.106 billion and outflows of US$287 million.

The SBP figures indicate that Pakistan attracted US$3.27 billion in gross FDI during July–May FY2025-26, while outflows totaled US$1.65 billion, leaving net FDI at US$1.62 billion.

According to the SBP data, the power sector remained the largest recipient of foreign direct investment in May, attracting US$85.8 million in net inflows, followed by financial business (US$59.6 million) and transport (US$34.4 million).

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