Pakistan’s finance ministry has reported a sharp fall in foreign investment during the first half of the fiscal year, even as key economic indicators suggest overall stability remains intact across major sectors.
According to the monthly Economic Update and Outlook, foreign direct investment declined by 43.3 percent between July and December, reaching 810 million dollars, while exports also dropped five percent to 15.5 billion dollars.
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Meanwhile, imports increased by 12.3 percent to over 31 billion dollars, yet higher worker remittances, which rose ten percent to 19.73 billion dollars, helped contain pressure on external accounts.
As a result, the current account deficit remained limited at 1.17 billion dollars, while the exchange rate showed only a slight movement, with the dollar rising from Rs278.7 to Rs279.9.
Furthermore, large-scale manufacturing recorded six percent growth during the first five months, as the government achieved a primary surplus of Rs3,651 billion and improved fiscal discipline.
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The report also highlighted stronger revenue collection, rising foreign exchange reserves at 16.1 billion dollars, and inflation expected to stay between five and six percent, signaling continued economic momentum.