KARACHI: Foreign Direct Investment (FDI) posted 15 percent growth during the first eleven months of this fiscal year (FY24).

The State Bank of Pakistan (SBP) on Friday reported that Pakistan fetched FDI amounting to $1.729 billion during July-May of FY24 as against $1.505 billion in the same period of last fiscal year (FY23), depicting an increase of $224 million. During the period under review, FDI inflows were $2.71billion as against outflows of $ 983 million.

Analysts said surge in the FDI is a good sign for the country, which is already looking for new avenues to build the foreign exchange reserves.

During the period under review, Chinese investment in Pakistan has shrunk by 19 percent. However, still China is the largest investing country with an investment of $521 million in total FDI. With $322 million FDI Hong Kong ranked second, UK ranked third with an investment of $244 million during the first eleven months of this fiscal year.

Month-on-month basis, FDI also rose by 53 percent to $271 million in May 2024 versus $156 million in May 2023. During May 2024, FDI inflows were $339 million and outflows were $68 million.

As the equity market is performing well, the foreign portfolio investment also witnessed an upward trend during the first eleven months of this fiscal year. Portfolio investment rose by 1036 percent to reach $116 million during July-May of FY24 as against $12.4 million outflow in corresponding period of last fiscal year.

Total foreign investment in Pakistan, comprising foreign direct investment, portfolio investment and foreign public investment increased sharply 142 percent or $688.6 million. Pakistan’s total foreign investment was $1.17billion in July-May of FY24 compared to some $482 million in same period of FY23.

Copyright Business Recorder, 2024

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