Foreign Direct Investment (FDI) in Pakistan’s Information and Communication Technology industry showed a strong rebound in fiscal year 2025. According to data released by the Ministry of IT and Telecom, total FDI in the ICT Sector reached $158.1 million during the year.
This figure represents a sharp rise compared to $93.4 million in FY 2024. The increase is close to 170 percent year-on-year. Despite this improvement, overall investment levels remain below the peaks seen earlier in the decade.
The ICT Sector had attracted $284.4 million in FY 2021 and reached a record $326.6 million in FY 2022. Investment then fell significantly to $107.2 million in FY 2023, reflecting economic and policy uncertainty. The latest data highlights a recovery, though progress remains uneven.
Telecom Investment Rebounds but Lags Past Levels
Foreign investment in the telecommunications segment rose to $97.1 million in FY 2025. This is a notable increase from $46.1 million in FY 2024 and $57.7 million in FY 2023.
Even with this recovery, telecom FDI remains well below historic highs. The sector had received $174.9 million in FY 2022 and $204.4 million in FY 2021. These figures show that investor confidence has not fully returned.
IT Segment Sees Gradual Improvement
Investment in the information technology segment stood at $61.1 million in FY 2025. This was higher than $47.3 million in FY 2024 and $49.6 million in FY 2023.
However, IT investment is still far below $151.7 million recorded in FY 2022. In FY 2021, the IT segment had attracted $80 million. The trend suggests a slow and cautious recovery within the ICT Sector.
Software and Hardware Investment Remain Weak
Within IT, software development received $9.7 million in FDI during FY 2025. This was only slightly higher than $8.4 million in FY 2024. Earlier, software investment had reached $45.8 million in FY 2022.
Hardware development continued to see very low foreign interest. It recorded $0.4 million in FY 2023, similar to FY 2021 levels. No meaningful improvement has been observed in recent years.
IT-Enabled Services Show Relative Strength
FDI in IT-enabled services, including IT services and BPO, reached $51.4 million in FY 2025. This was up from $38.9 million in FY 2024 and $34.4 million in FY 2023.
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Despite growth, investment remains below $104.6 million in FY 2022. The Ministry of IT and Telecom stated that policy stability and investor support are critical for sustaining higher FDI inflows into Pakistan’s ICT Sector.
