ANL 33.10 Decreased By ▼ -0.70 (-2.07%)
ASC 14.35 Decreased By ▼ -0.78 (-5.16%)
ASL 24.48 Decreased By ▼ -1.02 (-4%)
AVN 92.50 Decreased By ▼ -3.00 (-3.14%)
BOP 9.06 Decreased By ▼ -0.11 (-1.2%)
BYCO 9.70 Decreased By ▼ -0.53 (-5.18%)
DGKC 132.19 Decreased By ▼ -5.31 (-3.86%)
EPCL 50.10 Decreased By ▼ -1.52 (-2.94%)
FCCL 24.30 Decreased By ▼ -0.70 (-2.8%)
FFBL 24.40 Decreased By ▼ -1.05 (-4.13%)
FFL 15.02 Decreased By ▼ -0.68 (-4.33%)
HASCOL 10.56 Decreased By ▼ -0.34 (-3.12%)
HUBC 85.10 Decreased By ▼ -1.65 (-1.9%)
HUMNL 6.75 Decreased By ▼ -0.35 (-4.93%)
JSCL 25.25 Decreased By ▼ -1.79 (-6.62%)
KAPCO 38.75 Decreased By ▼ -1.25 (-3.13%)
KEL 3.98 Decreased By ▼ -0.17 (-4.1%)
LOTCHEM 14.43 Decreased By ▼ -0.37 (-2.5%)
MLCF 45.88 Decreased By ▼ -1.71 (-3.59%)
PAEL 36.70 Decreased By ▼ -1.60 (-4.18%)
PIBTL 11.43 Decreased By ▼ -0.48 (-4.03%)
POWER 10.15 Decreased By ▼ -0.55 (-5.14%)
PPL 89.70 Decreased By ▼ -1.27 (-1.4%)
PRL 26.25 Decreased By ▼ -1.20 (-4.37%)
PTC 8.60 Decreased By ▼ -0.21 (-2.38%)
SILK 1.35 Decreased By ▼ -0.05 (-3.57%)
SNGP 41.40 Decreased By ▼ -2.35 (-5.37%)
TRG 143.10 Decreased By ▼ -4.60 (-3.11%)
UNITY 29.79 Decreased By ▼ -1.41 (-4.52%)
WTL 1.42 Decreased By ▼ -0.10 (-6.58%)
BR100 4,888 Decreased By ▼ -127.55 (-2.54%)
BR30 25,276 Decreased By ▼ -854.04 (-3.27%)
KSE100 45,279 Decreased By ▼ -879.27 (-1.9%)
KSE30 18,898 Decreased By ▼ -409.3 (-2.12%)

KARACHI: Foreign Direct Investment (FDI) fell by 17 percent during the first five months of this fiscal year due to significant outflows by Chinese investors.

According to the State Bank of Pakistan (SBP), Pakistan fetched FDI amounting to $717 million in July-Nov of FY21 compared to $864.4 million in the same period of the last fiscal year (FY20), depicting a decline of $147.3 million. During the period under review, FDI inflows stood at $1.291 billion against the outflow of $574 million.

Month-on-month basis, FDI stood negative in November 2020 due to healthy outflow of investment by the Chinese and Norway investors. The FDI posted a negative growth of $16 million in November 2020 as compared to an investment of $192.4 million in November 2019. During November 2020, FDI inflows stood at $303 million versus outflows of $319 million.

The detailed analysis revealed that Chinese and Norway investors pulled out FDI amounted to $218 million and $55 million respectively in November 2020 mainly from power sector. However, still the major chunk of the foreign investment in Pakistan is contributed by China, which is remained the largest investing country with 35 percent share in overall FDI arrived during this fiscal year.

China’s net FDI was urged by 231 percent to $254 million during the July-Nov of this fiscal year up from $76.5 million. Malta is the second largest investing country with net FDI of $92.6 million and Netherlands ranked third with an investment of $88 million into Pakistan during the first five months of FY21.

Sector wise analysis revealed that major investment was poured in Power Sector amounted to $269 million followed by financial business Sector $134 million and Oil & Gas Explorations Sector fetched $100 million foreign direct investment in the first five months of this fiscal year.

In addition, portfolio investment continued negative growth trend. With overall outflow of $205 million in July-Nov of this fiscal year, portfolio investment stood negative $185.5 million versus an investment of $19.5 million in same period of last fiscal year.

During the period under review, total foreign investment in Pakistan (comprising foreign direct investment, portfolio investment and foreign public investment) declined by 81 percent or $1.631 billion to $389.3 million in the first five months of FY21.

Copyright Business Recorder, 2020