(Karachi) Foreign Direct Investment (FDI) fell sharply by 27.7% during the first 11 months of the outgoing fiscal year (FY21) compared to the same period last fiscal year, reported the State Bank of Pakistan (SBP) on Friday.

The latest data released by the State Bank shows FDI plunged by $671 million to stand at $1.75 billion during July-May FY21, compared to $2.42 billion in the corresponding period of the previous fiscal year. During the period under review, FDI inflows amounted to $2.768 billion as against an outflow of $1.017 billion .

However, on a monthly basis, FDI increased 63%, clocking in at $198.3 million in May 2021, compared to $121.4 recorded in May 2020.

Total foreign investment in Pakistan, including foreign direct investment, portfolio investment and foreign public investment, during Jul-May FY21 stood at $3.92 billion, an increase of 107.1% as compared to $1.89 billion in the same period last fiscal year.

The boost in foreign investment comes on the back of a rise in foreign public investment.

According to the SBP, the government sold Sukuk and Eurobonds globally this financial year, with $2.45 billion inflows coming in portfolio investment during July-May FY21.

Meanwhile, country-wise figures show China remained at the top among the list of investors. Net inflow of FDI from China was $728.2 million during the first eleven months of this fiscal year as against $843.1 million in the same period last year.

Major investment was directed into the power sector that attracted $856.1 million followed by financial business sector ($226.7 million), and oil & gas exploration sector ($206.2 million).