ISLAMABAD (MNN); Pakistan recorded a negative net foreign direct investment (FDI) of $135 million in December as foreign investors withdrew more capital from the country than they invested, according to data released by the State Bank of Pakistan on January 19.
The data showed that foreign investors injected $322.5 million into Pakistan during December, while total withdrawals stood at $457.3 million, resulting in a net outflow.
Overall net FDI during the first six months of the current financial year (July to December FY26) declined sharply to $808 million, compared with $1.4 billion recorded during the same period of the previous financial year, indicating that foreign investment almost halved year-on-year.
Pakistan’s external financing position also weakened in December due to rising imports and continued income outflows, pushing the current account back into deficit. The country posted a current account deficit of $244 million in December, compared to a surplus of $98 million in November.
As a result, the cumulative current account balance for July to December FY26 widened to a deficit of $1.174 billion, against a surplus of $957 million during the corresponding period last year.
The deterioration was mainly driven by trade imbalances. Imports of goods increased to $5.74 billion in December, while exports remained limited at $2.75 billion. Trade in services also stayed negative, with services exports recorded at $936 million and imports at $1.31 billion, adding around $370 million to the deficit.
Workers’ remittances continued to provide some relief, rising to $3.59 billion in December.
Meanwhile, the financial account recorded a net outflow of $596 million during the month, while foreign direct investment remained in negative territory.
Analysts say the December figures highlight Pakistan’s continued dependence on remittances and official financing, while rebounding imports and softening export growth suggest that the balance of payments remains vulnerable to domestic and geopolitical developments.
