Foreign direct investment, Pakistan, FDI, SBP, FDI Pakistan

Pakistan witnesses 27pc drop in foreign direct investment

Foreign direct investment (FDI) during the first seven months of the current fiscal year fell by 27 per cent compared to the same period of last fiscal year, the State Bank of Pakistan (SBP) reported on Monday.

The FDI during July-Jan FY21 was $1.145 billion against an inflow of $1.577bn in the same period last fiscal year. The inflow during January was $192.7m compared to $219m in the same month of previous fiscal year; 12 per cent decline was noted, said a report.

However, the seven-month decline was mainly due to a decline in net FDI from China and increase in net outflow to Norway.

The country-wise details showed that net inflow of FDI from China was $402.8 million against $502.6m in the same period of last fiscal year. So far, the net FDI from China is the highest in the list of inflows from other countries. The inflows from China were $707.2 million during the seven months but the outflow of $304.4m in the same period reduced the net FDI to $402.8m.

Others from where over $100m net FDIs were received were the Netherlands and Hong Kong, as they invested $122m and $105m, respectively, during the first seven months of FY21. The inflows of FDI from the UK (83.8m), the US ($73.5m) and Malta ($60.6m) were also significant during the seven months.

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