KARACHI: Foreign Direct Investment (FDI) in Pakistan constricted by 44 percent during the first seven months of this fiscal year (FY23). The State Bank of Pakistan (SBP) on Monday reported that the country has fetched FDI amounted to $683 million during July-Jan of FY23 as against $1.22 billion in the same period of last fiscal year (FY22). During this period, FDI inflows were $1.178billion and outflows $493 million.

However, Year on Year basis, during January 2023, FDI presented improved performance and rose by 101 percent. With $ 244.3 million inflows and $22 million outflows, FDI stood a $221.5 million in January 2023 compared to $110 million direct investment in January 2022. The surge in FDI during January was led by significant contraction in investment outflow coupled with jump in foreign inflow.

According to State Bank, net foreign portfolio investment also posted negative growth with $14 million outflows during the first seven months of this fiscal year.

Total foreign investment including FDI, portfolio investment and foreign public investment posted some 118 percent decline during the period under review. Total foreign investment in the country stood at negative $ 341.4 million in July-Jan of FY23 compared to an investment of $ 1.875billion in the same period of last fiscal year.

Copyright Business Recorder, 2023