UK, UAE, US Withdraw Nearly $1 billion from Pakistan Amid Global Economic Uncertainty After Trump Tariffs

Pakistan is experiencing a significant outflow of foreign investment, with three major countries—the UK, UAE, and US—collectively withdrawing a total of $1 billion due to political and economic uncertainty.

This situation has been further worsened by reciprocal tariffs, following Donald Trump ’s imposition of a substantial 29% import duty on the country.

According to the State Bank of Pakistan, the country received $1.163 billion in foreign investment, of which $1.121 billion flowed out through T-bills between July 1, 2024, and March 14, 2025, leaving a mere $42 million in net inflows.

The United Kingdom, which had invested $710 million during FY25, withdrew $625 million, while the UAE and the United States withdrew $205 million and $130 million, respectively.

A financial expert attributed this trend to Pakistan’s fragile external sector, which has already been burdened by $25 billion in annual external debt servicing. Amid these challenges, Pakistan, which has been on the verge of declaring bankruptcy, has been seeking funding from the International Monetary Fund (IMF) and actively attempting to reschedule its debt with China, the UAE, and Saudi Arabia.

A Pakistani banker noted that the country is struggling to access international markets for commercial loans. Meanwhile, a financial analyst highlighted that political and economic instability, coupled with low growth indicators, is what pushing investors confidence in Pakistan’s economy.