Karachi: The Foreign Direct Investment (FDI) posted a negative growth during the first two months of this fiscal year.
The State Bank of Pakistan (SBP) on Friday reported that Pakistan fetched FDI amounting to $203 million in July-Aug of FY22 compared to $255 million in the same period of last fiscal year (FY21), depicting a decline of 20 percent or $52 million. During the period under review, FDI inflows stood at $359.5 million against the outflow of $ 156.4 million.
China ranked first in the FDI this fiscal year. Chinese investors invested some $54 million in Pakistan during the first two months of this fiscal year. Singapore and Hong Kong with an investment of $25 million and $20 million were also the major contributors in the FDI.
The detailed analysis revealed that despite some improvement, the foreign investors are still withdrawing their investments from the stock market. The second component of foreign investment, ie, portfolio investment registered outflow of $ 15 million during the first two months of this fiscal year.
However, total foreign investment in Pakistan rose significantly due to sale of debt securities in the international market. Pakistan has got $976 million foreign public investment during the July-Aug of this fiscal year as against $25.5 million withdrawal in corresponding period of the last fiscal year.
Accordingly, total foreign investment in Pakistan, comprising foreign direct investment, portfolio investment and foreign public investment rose sharply 877 percent during the period under review. Pakistan's total foreign investment surged to $1.165 billion in July-Aug of FY22 compared to some $119.2 million in the same period of FY21, showing an increase of $1.046 billion.
Month on Month basis, FDI amounted to $113.2 million in Aug 2021 versus $126 million in Aug 2020, depicting a decline of 10 percent or $13 million. During Aug 2021, FDI inflows were $183 million and outflows were $70 million.
Copyright Business Recorder, 2021