According to data from greenfield investment monitor fDi Markets, there has been a fall in the number of FDI projects in Pakistan in 2012. A total of 295 projects have been recorded in the country between January 2003 and May 2012, but only nine of these were in 2012. The data from fDi Markets is supported by provisional figures recently released by the State Bank of Pakistan, which showed a decline in inbound FDI of 50.3%.

Historically, Pakistan's construction sector has accounted for the largest proportion of capital, attracting more than $19bn-worth of investment between January 2003 to May 2012, although investment in this sector has been in decline in recent years. The coal, oil and natural gas and alternative and renewable energy sectors are the second and third most popular sectors for investment, having attracted $8.92bn and $8.2bn, respectively in that period.


In terms of project numbers, the financial services sector has attracted the most FDI with 50 projects in the sector between January 2003 to May 2012. This is followed by the coal, oil and natural gas, and communications sectors, which account for 27 and 25, respectively. So far in 2012, however, these three sectors have attracted just one FDI project.

Some analysts believe that the decline in foreign investment in Pakistan is due to a number of domestic factors. These factors include the country’s poor energy infrastructure, business climate and the ongoing war on terror.