KARACHI: Foreign Direct Investment (FDI) in Pakistan continues to post a negative growth and fell by 35 percent during the first nine months of this fiscal year (FY21).
The State Bank of Pakistan (SBP) Monday reported that foreign investors invested some $1.395 billion in Pakistan on account of FDI during the July-March of FY21 compared to $2.15 billion in same period of the last fiscal year (FY20), depicting a decline of $755 million. During the period under review, the country fetched FDI inflows amounted to $2.268 billion as against outflow of $873 million.
Negative growth in the FDI is attributed to a notable decline in the investment from China. Net FDI from China down by 24 percent to $ 651 million in the first nine months of this fiscal year compared with $ 859 million of FDI in corresponding period of last fiscal year.
However, still China ranked first in the foreign direct investment arrived this fiscal year. In addition, with an investment of $106 million Hong Kong is the second largest investing country. UK stood third with $105 million investment.
Similarly, Portfolio Investment (PI) also witnessed a negative growth and registered outflow of $ 265 million during July-March of this fiscal year.
Month on Month basis, FDI amounted to $168 million was arrived in March 2021 versus $279 million in March 2020, depicting a decline of 40 percent or $111 million. During March 2021, FDI inflows were $253 million and outflows were $86 million.
Total foreign investment in Pakistan, comprising foreign direct investment, portfolio investment and foreign public investment fell 52 percent during the first nine months of current fiscal year. Pakistan's total foreign investment declined to $1.126 billion in July-March of FY21 compared to some $ 2.377 billion in same period of FY20, showing a decline of $1.25 billion.
Copyright Business Recorder, 2021