Pakistan seeks to boost FDI and US tech trade ties

Pakistan is facing a decline in foreign direct investment (FDI), with net inflows dropping 30.8% to $1.409 billion during the July 2025 – April 2026 period compared to the previous fiscal year. Data from the State Bank of Pakistan indicates that while China remains the primary source of FDI, much of the investment is concentrated in the power and financial sectors. Experts suggest a need for a more balanced model that engages the domestic private sector to attract capital into manufacturing, technology, and export-oriented industries.

In a parallel effort to bolster economic ties, the United States is looking to expand trade with Pakistan through cooperation in artificial intelligence and emerging technologies. US Chargé d’Affaires Natalie A Baker visited Lahore to discuss innovation and entrepreneurship with regional leadership. Highlighting that the US has been Pakistan’s largest export market for over two decades, with bilateral trade exceeding $8 billion in 2025, Baker emphasized the potential for American private sector partnerships to drive job creation and technological development in Pakistan.