KARACHI: Foreign Direct Investment (FDI) posted 11 percent growth during the first seven months of this fiscal year (FY22).
The State Bank of Pakistan (SBP) reported Thursday that Pakistan fetched FDI amounting to $1.166 billion during July-Jan of FY22 compared to $1.048 billion in the same period of the previous fiscal year (FY21), showing an increase of $ 119 million. During the period under review, overall FDI inflows were $1.635 billion against $469 million outflows.
Although Chinese direct investment in Pakistan declined 17 percent, it remained the largest contributor in the FDI inflows. With 30 percent share in overall FDI inflows, Chinese investment in Pakistan stood at $360 million in the first seven months of this fiscal year relative to $433 million in the corresponding period of the last fiscal year.
The detailed analysis revealed that the United States ranked second with $169 million inflows in FDI. Hong Kong and Netherlands also among major contributor with $123 million and $82 million foreign direct investment in Pakistan during the first seven months of this fiscal year.
However, during the period under review, portfolio investment continued to register a downward trend and declined by 30.6 percent with an outflow of $307 million.
As Pakistan has recently issued Sukuk bonds in the international market to build the depleting foreign exchange reserves, the foreign public investment recorded 724 percent growth. Foreign public investment rose to $958.3 billion in July-Jan of FY22 as against outflow of $ 153.5 million in the corresponding period of last fiscal year.
According to the SBP, total foreign investment in Pakistan, comprising foreign direct investment, portfolio investment and foreign public investment mounted up by 176 percent during the period under review. The country’s total foreign investment surged to $1.817 billion in July-Jan of FY22 compared to $659 million in the same period of FY21, depicting an increase of $1.158 billion.
Month-on-month basis, with a 34 percent or $58 million decline, Pakistan attracted $110 million FDI during January 2022 compared to $168 million in January 2021.
Copyright Business Recorder, 2022