ISLAMABAD: Pakistan witnessed a sharp decline of 43.3 percent in foreign direct investment (FDI) during the first half of the current fiscal year, from July to December 2025, while the country’s exports also fell by 5 percent to $15.5 billion.
According to the Finance Ministry’s Economic Outlook Report, total FDI during the six-month period stood at $810 million. Meanwhile, imports surged by 12.3 percent, crossing $31 billion.
The report stated that workers’ remittances increased by 10 percent to $19.73 billion during the same period, while the current account deficit was recorded at $1.17 billion.
The exchange rate showed slight depreciation, with the dollar rising from Rs 278.7 to Rs 279.9. However, large-scale manufacturing (LSM) output posted a 6 percent growth during the first five months of the fiscal year.
The Finance Ministry reported a primary surplus of Rs 3,651 billion, reflecting improved fiscal discipline.
According to the outlook, Federal Board of Revenue (FBR) collections increased by 9.5 percent to Rs 6,160 billion, while non-tax revenue rose by 4.8 percent to Rs 3,581 billion.
The report further noted that State Bank of Pakistan’s foreign exchange reserves increased to $16.1 billion.
It added that overall economic stability remained intact during the first half of FY2026, with expectations of sustained economic momentum in the ongoing fiscal year.
The Finance Ministry said improved fiscal management helped support macroeconomic stability. Inflation is expected to remain between 5 and 6 percent in the current month, while price pressures remain under control and LSM growth has shown noticeable improvement.
The report also highlighted that foreign exchange reserves remain strong, the rupee has stayed stable, and the Pakistan Stock Exchange has witnessed a strong rally, ranking among the best-performing markets globally.