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Foreign Direct Investment (FDI) posted an increase of 9 percent during the first five months of this fiscal year (FY16). The State Bank of Pakistan (SBP) Thursday revealed that the country fetched $540.2 million FDI during the July-November of FY16 compared to $497 million in the corresponding period of last fiscal year (FY15), depicting an increase of 8.7 percent or $43 million. During the period under review, FDI inflows stood at $908 million against the outflow of $368 million.
However, the second component of foreign investment in Pakistan, ie, portfolio investment witnessed a downward trend and declined 197 percent or $392 million during the period under review. Portfolio investment stood negative at $194 million in July-November of this fiscal year compared to $199 million inflows in the same period of last fiscal year.
Similarly, during the period under review, net inflows of foreign investment, comprising FDI, portfolio investment and foreign public investment posted an increase of 23 percent.
With current surge, net inflows of foreign investment in Pakistan stood at $825 million in first five months of the current fiscal year compared to $671 million in the corresponding period of last fiscal year, depicting an increase of $154 million.

Copyright Business Recorder, 2015

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