- Although Chinese investment in the country has declined sharply, China is still the largest investing county
Foreign Direct Investment (FDI) coming into Pakistan fell a nominal 1.6% during the first ten months of the ongoing fiscal year (FY22).
The State Bank of Pakistan (SBP) reported that Pakistan fetched FDI amounting to $1.455 billion during July-April of FY22 compared to $1.480 billion in the same period last year (FY21) - a decline of $25 million. During the period under review, FDI inflows were $2.161 billion against outflow of $706.2 million.
Although overall Chinese investment in the country has declined sharply by 49.14%, China still remained the largest investing country with net FDI of $356 million during the first ten months of this fiscal year compared with $700 million during same period last year.
The US remained the second largest investor with net FDI of $223 million, compared with $113mn during the same period last year, an increase of 97%.
Foreign direct investment during April 2022 witnessed net inflow $170.6 million, up 1%, compared to net inflow of $169 million during April 2021.
Overall, foreign investment in the country declined by 57.1% to $1.570 billion during July-April of FY22, against $3.663 billion in the corresponding period of last fiscal year.
During 10MFY22, major investment was poured in power sector ($528 million) followed by financial business sector ($347 million) and Oil and Gas Exploration ($185 million).
Earlier this week, Prime Minister Shehbaz Sharif said increasing foreign direct investment in the country is one of the top most priorities of the government.
Meanwhile, foreign exchange reserves held by the SBP decreased by $145 million in the period between May 6 to May 13 to stand at $10.16 billion, with the level staying at less than 1.5 months of import cover.