KARACHI: Foreign Direct Investment (FDI) into Pakistan rose by 20 percent during the first half of this fiscal year (FY22), the State Bank of Pakistan (SBP) reported Tuesday.
According to the SBP data, Pakistan received FDI amounting to $1.056 billion during July-Dec of FY22 compared to $880 million in the same months of the previous fiscal year (FY21), showing an increase of $177 million. During the period under review, net FDI inflows were $1.454 billion (down by 7 percent) against the outflow of $397 million (fell 42 percent).
During the first half, major investment in the power sector amounted to $364 million followed by the Financial Business Sector worth $206 million and Communications Sector amounted to $147 million.
This fiscal year started with negative growth as overall FDI declined 12 percent in the first four months of this fiscal year. However, with healthy and fresh FDI inflows from some new destinations turned the growth positive.
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Although, overall Chinese investment in Pakistan is down, however, China is still dominating with 30 percent share in overall FDI arrived during this fiscal year.
The country-wise data showed that Chinese investment in Pakistan fell 21 percent during the first half of the current fiscal year; however, it is still ranked one with $307 million during the July-Dec of FY22 compared to $390 million in the same period of last fiscal year.
The United State is the second largest investing country with an investment of $149.3 million, up 119 percent or $81 million in the first half of this fiscal year. FDI from the Netherlands rose by 185 percent to $124.5 million and foreign investment from Hong Kong stood at $111 million, up by 31 percent.
Month-on-month basis, Pakistan received $219 million FDI during December 2021 compared to $169 million in December 2020.
During the period under review, total foreign investment in Pakistan, comprising foreign direct investment, portfolio investment and foreign public investment posted 47.5 percent growth.
Pakistan’s total foreign investment stood at $651 million in July-Dec of FY22 compared to some $442 million in the same period of FY21, depicting an increase of $210 million.
Copyright Business Recorder, 2022