Pakistan recorded a notable rise in foreign direct investment (FDI) during August 2026, with net inflows reaching $316 million, equivalent to around Rs30.3 billion, according to data from the State Bank of Pakistan compiled by Topline Securities.
The August figure marked a 77% increase from July and an 80% rise compared with the same month last year. During the first two months of fiscal year 2026–27, Pakistan’s net FDI reached $495 million, showing a 24% increase year-on-year.
The increase comes shortly after Pakistan, Saudi Arabia and Türkiye signed the Makkah Joint Defence Agreement on August 7, 2026. The agreement aims to strengthen collective security and defence cooperation, with the three countries agreeing that an armed attack against one would be regarded as an attack against all.
Market reporting has linked the broader strategic developments with increased investor activity. However, the available data does not establish that the defence agreement itself caused the increase in FDI. China, Canada and the United Arab Emirates remained among Pakistan’s major sources of foreign investment during the period.
The latest figures indicate stronger foreign investment activity as Pakistan continues efforts to attract international capital and expand economic cooperation.
