Pakistan received a significant boost in foreign direct investment (FDI), with China contributing $120 million during the first two months of the current fiscal year (July–August), according to the latest State Bank of Pakistan report. This amount accounts for almost one-third (32.9%) of the total $364.3 million FDI inflows the country recorded in the same period.
China: Pakistan’s Largest Investment Partner
China remains Pakistan’s largest investment partner, and officials are optimistic about a further increase in these inflows in the coming months. This positive outlook follows a series of high-level visits and agreements designed to deepen the economic ties between the two nations.
Earlier this month, Prime Minister Shehbaz Sharif completed a six-day official visit to China, during which both sides signed 21 Memorandums of Understanding (MoUs) and joint venture agreements. These agreements, valued at around $8.5 billion, cover multiple sectors and mark the beginning of the second phase of the China-Pakistan Economic Corridor (CPEC). This flagship project, part of China’s Belt and Road Initiative, focuses on infrastructure, energy, and industrial development in Pakistan.
In addition to the prime minister’s visit, President Asif Ali Zardari participated in key meetings this week, focusing on new cooperation agreements in agriculture, vocational training, and environmental sustainability. These MoUs are expected to enhance collaboration in areas directly impacting Pakistan’s economy and society, offering opportunities for skill development and sustainable growth.
Experts suggest that the combination of rising Chinese investment, fresh agreements under CPEC, and Pakistan’s efforts to attract more foreign capital could help overcome its economic challenges, promoting long-term stability.
