KARACHI: Foreign Direct Investment (FDI) in the country plunged by 17 percent during the first eight months of this fiscal year (FY24).

The State Bank of Pakistan (SBP) reported on Wednesday that Pakistan fetched FDI amounted to $820.6 million during July-Feb of FY24 as against $990 million in the same period of last fiscal year (FY22), depicting a decline of $169.5 million.

During the period under review, FDI inflows fell slightly 5 percent to $ 1.571 billion as against $1.648 billion outflows received in the previous year. However, FDI outflows increased by 14 percent to $750 million during the first eight months of this fiscal year.

Analysts said that economic uncertainty because of political unrest has hit the foreign investment in the country, of which, Pakistan is facing a crisis of foreign reserves and compelled to avail a SBA program from IMF.

Still, the country has billions of dollar debt payments and likely to avail another long-term IMF program to build the foreign exchange reserves, they added.

Foreign Portfolio Investment (FPI), the second component of foreign investment, rose by 753 percent because of better performance of the Pakistan Stock Exchange. FPI stood at $46.2 million during the July-Feb of FY24 compared to an outflow of $ 7.1 million during the corresponding period of last fiscal year.

Total foreign investment in Pakistan, comprising foreign direct investment, portfolio investment and foreign public investment recorded a notable increase of 3524 percent. Total foreign investment in the country was $932.4 million in the first eight months of this fiscal year versus $27.2 million outflow in the same period of FY23.

Copyright Business Recorder, 2024