KARACHI: Foreign Direct Investment (FDI) in the country rose by 17 percent during the last fiscal year (FY24). The State Bank of Pakistan (SBP) on Friday reported that Pakistan fetched FDI amounting to $1.901 billion during FY24 compared to $1.627 billion in FY23, showing an increase of $274.6 million. During the period under review, FDI inflows were $2.955 billion as against $1.053 billion outflows.

The massive growth in FDI is mainly due to Chinese investment. China is the largest contributor in the FDI with 30 percent share and $568 million investment during the last fiscal year.

However, in terms of growth China’s investment in Pakistan declined 18 percent from 93 million recorded in FY23. Hongkong ranked second with $358 million FDI and the UK third with $268 million investment in Pakistan during the last fiscal year.

July-May FDI grows $224m to $1.729bn YoY

Month-on-month basis, statistics are also encouraging as FDI rose by 37 percent in June 2024. According to SBP, $ 169 million worth of FDI was received in June 2024 versus $ 123 million in June 2023.

The second component of the foreign investment i.e. portfolio investment also recorded an 845 percent surge during the last fiscal year. Portfolio investment stood at $120.2 million in July-June of FY24 as against the outflow of $16 million in the same period of last fiscal year.

Total foreign investment in Pakistan, comprising foreign direct investment, portfolio investment and foreign public investment registered a growth of 153 percent or $ 918.4 million to reach $1.519 billion in FY24 compared to $600.7 million in FY23.

Copyright Business Recorder, 2024