KARACHI: Foreign Direct Investment (FDI) continued to post negative growth and declined by 12 percent during the first four months of this fiscal year (FY22).
The State Bank of Pakistan (SBP) reported on Wednesday that Pakistan fetched FDI amounting to $662 million during July-Oct of FY22 as against $751 million in the same month of the previous fiscal year (FY21), showing a decline of $88.5 million. During the period under review, overall FDI inflows were $965.4 million against $303.3 million outflow.
Portfolio investment also registered downward trend with an outflow of $ 178.3 million during July-Oct of FY22.
According to SBP, total foreign investment in Pakistan, comprising foreign direct investment, portfolio investment and foreign public investment rose by 31 percent during the first four months of FY22.
The country’s total foreign investment surged to $424 million in July-Oct of FY22 compared to some $324 million in the same period of FY21, depicting an increase of $100 million.
The detailed analysis revealed that the highest FDI amounted to $160 million was from Netherlands.
With a 312 percent increase, some $114.3 million direct investment was received from the United States during the July-Oct of this fiscal year versus $27.7 million investment in the same period of last fiscal year.
Although, China’s direct investment in Pakistan fell sharply 243 percent during this fiscal year.
However, China is still the third largest investing country with an investment of $116.5 million in the first four months of this fiscal year compared to $ 399.5 million in corresponding period of last fiscal year.
Month-on-month basis, with a 24 percent or $70 million decline, Pakistan attracted $223 million FDI during October 2021 compared to $ 293 million in October 2020.
Copyright Business Recorder, 2021