Foreign Investment falls 43% in first half, Finance Ministry says in monthly outlook
Business
Pakistan’s finance ministry reports a 43% drop in foreign investment, rising imports, steady reserves, modest export decline, and inflation expected to stay between 5% and 6%.
ISLAMABAD (Dunya News) — Pakistan’s finance ministry has released its monthly Economic Update and Outlook report, showing a sharp decline in foreign direct investment (FDI) during the first half of the fiscal year.
According to the report, FDI fell by 43.3% between July and December, totaling $810 million. Exports also slipped by 5% to $15.5 billion over the same period.
Imports, however, rose by 12.3% to more than $31 billion, while remittances increased by 10% to $19.73 billion, helping support the country’s external accounts.
The current account deficit stood at $1.17 billion.
The ministry said the exchange rate edged up, with the dollar rising from Rs278.7 to Rs279.9. Large-scale manufacturing output posted 6% growth in the first five months of the fiscal year. A primary surplus of Rs3,651 billion was also recorded.
Revenue collection improved, with the Federal Board of Revenue (FBR) posting a 9.5% increase to Rs6,160 billion, while non-tax revenue rose by 4.8% to Rs3,581 billion.
The report noted that State Bank foreign exchange reserves climbed to $16.1 billion, and overall economic stability was maintained in the first half of fiscal year 2026. The ministry said growth momentum is expected to continue through FY 2025-26.
Inflation is projected to remain between 5% and 6% this month, supported by fiscal discipline and improved performance in large-scale manufacturing.
The ministry added that the rupee remains stable, and the Pakistan Stock Exchange has emerged as one of the top-performing markets globally, reflecting stronger investor confidence.
