Pakistan, Jan. 20 -- Foreign direct investment (FDI) plunged 43 per cent during the first half of the current fiscal year, deepening challenges for the government as it seeks to revive overseas capital inflows amid rising geopolitical uncertainty. The sharp decline underscores the fragile sentiment of foreign investors, exacerbated by tensions in the broader region.

Read More: Pakistan receives $2.5bn in FDI in last FY: minister

According to data for July-December FY26, Pakistan attracted $808 million in net FDI, down from $1.425 billion in the same period a year earlier. Analysts said the fall reflects heightened geopolitical risks, including tensions with Iran, a brief conflict with India, and the wider Iran-Israel and US-Iran standof...