KARACHI: Foreign Direct Investment (FDI) in Pakistan surged by 40 percent during the first two months of this fiscal year (FY21).

According to the State Bank of Pakistan (SBP), foreign investors made some $227 million Foreign Direct Investment in Pakistan during July-August of FY21 compared to $162 million in same period of last fiscal year (FY20), depicting an increase of 39.9 percent or $64.7 million. During the period under review, FDI inflows were $352 million as against outflow of $125 million.

Inflows from Norway, Malta, and Netherlands largely contributed in the overall growth and these three countries contributed some 54 percent share in the total FDI arrived in two months.

With an investment of some $45 million Norway is the leading investing country. Investors from Malta and Netherlands invested some $37 million and $41 million respectively during the July-Aug of FY21.

Sector wise statistics revealed that most of investment was made financial business amounted to $85 million, communication $37 million, electrical machinery $36.5 million and oil & Gas $34.3 million.

Similarly, portfolio investment fell sharply 310 percent with overall some $76.3 million outflow in first two months of this fiscal year compared to an investment of $36.3 million in corresponding period of last fiscal year.

During the period under review, total foreign investment in Pakistan, comprising foreign direct investment, portfolio investment and foreign public investment, declined 22 percent to $210 million.

FDI during August was $112 million with some $183 million inflows and $71 million outflows.

Copyright Business Recorder, 2020