The Foreign Direct Investment (FDI) maintained slowdown dropping by 40 percent in the first two months of this fiscal year (FY19). The State Bank of Pakistan (SBP) Friday reported that, Pakistan fetched FDI amounting to $288.2 million in July-August of FY19 compared to $480.6 million in the same period of last fiscal year (FY18), showing a decline of $192.4 million. During the period under review, FDI inflows stood at $407.8 million, down 30 percent against the outflow of $119.6 million, up 19 percent.
According to the SBP, the second component of foreign investment, ie, portfolio investment also posted a negative growth due to volatility at Pakistan's equity market. Portfolio investment stood negative at $129.6 million, down 22.6 percent, in the first two months of this fiscal year.
China remained largest contributor to FDI inflows due to massive investment in CPEC-related projects. China's share is some 59 percent in the overall foreign direct investment arrived during the first two months of current fiscal year. However, in terms of value, the Chinese investment posted some 30 percent decline. Chinese investors invested some $171 million in Pakistan in July-August of FY19 against $289 million in the corresponding period of FY18.
During the period under review, FDI inflows from United Kingdom, Switzerland, and United States were $37.4 million, $32.4 million and $20.5 million, respectively.
Similarly, total foreign investment in Pakistan, comprising foreign direct investment, portfolio investment and foreign public investment fell sharply by 51 percent during the first two months of this fiscal year. The country's total foreign investment declined to $159 million in July-August of FY19 compared to $325 million in the same period of FY18.
Month-on-month basis, FDI stood at $160 million in August 2018 against $247 million in August 2017, depicting a decline of 35 percent or $87 million. During August 2018, FDI inflows were $219.5 million and outflows $59.4 million.
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