KARACHI: Foreign Direct Investment (FDI) in Pakistan experienced a remarkable 48 percent increase during the first quarter of the fiscal year 2025 (FY25).

According to the State Bank of Pakistan (SBP), the country attracted FDI totaling $771 million from July to September 2024, compared to $520 million during the same period in FY24, marking an increase of $251 million. During this period, total FDI inflows approached $1 billion, significantly outweighing the $231 million in outflows.

In contrast, the portfolio investment sector faced challenges, recording an outflow of $23 million in the first quarter of FY25. This is a decline from a modest investment of $9.6 million in the corresponding period of FY24, despite the country’s equity market achieving all-time high levels.

Jul-Aug FDI up 55.5pc to $350.3m YoY

On a year-on-year basis, foreign investment statistics remain encouraging, with FDI rising by 81 percent to $385 million in September 2024, compared to $213 million in September 2023.

Overall, total foreign investment in Pakistan, which includes foreign direct investment, portfolio investment, and foreign public investment, saw a substantial growth of 70 percent, reaching $903.5 million in July-September FY25, up from $530 million in the same period of FY24.

It may be mentioned here that net FDI increased in FY24, reaching the average level of FY21-22, after a sharp decline in FY23.Unlike last year, gross inflows significantly outweighed the gross outflows. As a result, net FDI rose by 16.9 percent to $ 1.9 billion in FY24.

Copyright Business Recorder, 2024