KARACHI: The Foreign Direct Investment (FDI) into the country remained on a downward trend and fell by 59 percent during the first half of this fiscal year (FY23).
The State Bank of Pakistan (SBP) on Wednesday reported that the country has fetched FDI amounted to $461 million during July-Dec of FY23 as against $1.115 billion in the same period of last fiscal year (FY22). During this period, FDI inflows were $932.5 million and outflows $472 million.
Economists said that foreign investors are reluctant to invest into Pakistan due to prevailing uncertainty on the economic and political front for the last one year. The massive fall in the CPEC investment from China has also largely contributed to this decline. Foreign investment is likely to remain dull during this financial year as this is election year, they added.
Jul-Nov FDI declines 51pc to $430m YoY
According to State Bank, net foreign portfolio investment also posted negative growth with $13 million outflows during the first half of this fiscal year.
As the country has repaid Sukuk bonds worth $1 billion in December 2022, the foreign public investment also recorded a 938 percent decline during the period under review.
Total foreign investment including FDI, portfolio investment and foreign public investment posted some 181 percent decline in the first half of FY23. Total foreign investment in the country stood at negative $ 572 million in July-Dec of FY23 compared to an investment of $ 709 million in the same period of last fiscal year.
Copyright Business Recorder, 2023
Comments
Comments are closed for this article.