Daily Times

The net Foreign Direct Investment (FDI) has decreased by 58.7 percent during the current financial year (July-December) as compared to corresponding period 2021-22, Minister for Parliamentary Affairs Murtaza Javed Abbasi said Friday.

Replying to a query of Mushtaq Ahmed, during question hour in the Senate, he said the net Foreign Direct Investment (FDI) had decreased to US dollars 460.9 million from US dollars 1,114.8 million as compared to corresponding period 2021-22.

Quoting State Bank of Pakistan (SBP) data of 2021-22, he said the net FDI stood at US$ 1,867.8 million which was 2.6% higher than corresponding period 2020-21 amount of US$ 1,820.8 million.

While in the month of February 2022, FDI decreased 33.7% to US$ 90.8 million from US$ 137.0 million and Net FDI during July-October 2022 decreased to 45.5% to US$ 396.0 million from US$ 726.5 million.

Highlighting reasons of decline, he said Covid-19 pandemic, high cost of doing business in the country; macroeconomic pressures such as current account and balance of payment deficit; disruption in food supply and energy prices due to Ukraine war, were the major reasons of decline in FDI.

He said government was taking all possible steps and making efforts to attract FDI into the country and facilitate investors. Business climate was being improved through initiatives such as Pakistan Regulatory Modernization Initiative and other sector reforms, he added.

Establishment of special economic zones (SEZs) was being supported to promote industrialization in the country. Issuance of visa, branch/liaison office, security clearance and airport entry passes were being facilitated, he added. He said the government was also addressing investor grievances through a special Cell, connected to online Portal. Projects portal and incentives’ portal had been created on the Board of Investment’s (BOI) website for the facilitation of potential investors, he added.