KARACHI: Foreign Direct Investment (FDI) in the country plunged by 21 percent during the first eleven months of this fiscal year (FY23).

The State Bank of Pakistan (SBP) reported on Tuesday that Pakistan fetched FDI amounted to $1.32 billion during July-May of FY23 as against $1.66 billion in the same period of last fiscal year (FY22), depicting a decline of $345 million.

During the period under review, FDI inflows fell sharply 19 percent to $ 1.948 billion as against $629 million outflows, which rose by 15 percent.

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Analysts said that political and economic uncertainty has directly hit the foreign investment in the country. Pakistan is facing a serious crisis of foreign exchange reserves and needs massive inflows to build the depleting reserves.

Foreign portfolio investment remained negative $ 15 million outflow during the first eleven months of this fiscal year, however, the outflow was lower than corresponding period of the last fiscal year, in which outflow from portfolio investment was $376 million.

Total foreign investment in Pakistan, comprising foreign direct investment, portfolio investment and foreign public investment fell massively 82 percent or $1.361 billion to stand at $294 million in July-May of FY23 compared to $1.655 billion in the same period of FY22.

Month-on-month basis, FDI statistics are encouraging with 6 percent growth during May 2023. According to SBP, some $ 149 million worth FDI was arrived in May 2023 versus $141.2 million in May 2022.

Copyright Business Recorder, 2023