Daily Times

Net Foreign Direct Investment (FDI) in the country increased 12 percent during the first five months (July-November) of the current fiscal year 2021-22.

According to the data released by the State Bank of Pakistan (SBP) on Friday, FDI on a monthly basis, however, dropped a massive 39pc, down from $223 million in October 2021 to $136 million in November 2021.

Cumulatively, Pakistan fetched FDI amounting to $797.7 million during July-Nov of FY22 as against $710.3 million in the same period of the previous fiscal year (FY21), an increase of $87.4 million or 12pc YoY. During the period under review, overall FDI inflows were $1,185.4 million against $387.7 million outflow.

On the other hand, portfolio investment registered a downward trend with an outflow of $263.2 million during July-Nov of FY22.

According to the SBP, total foreign investment in Pakistan, comprising foreign direct investment, portfolio investment and foreign public investment, stood at $455.5 million during the first five months of FY22, as compared to $263.4 million in same period last year, an increase of $191.9 million.

Country-wise analysis revealed that the highest FDI amounted to $153 million, and came from the Netherlands in the first five months of FY22, up from $34.9 million inflows recorded in the same period last fiscal.

China’s direct investment in Pakistan fell sharply 56pc during this fiscal year. However, China is still the second largest investing country with an investment of $149 million in the first five months of this fiscal year compared to $337.1 million in corresponding period last fiscal year.

Meanwhile, with a 325pc increase, some $129.9 million direct investment was received from the United States during the July-Nov of this fiscal year versus $39.9 million investment in the same period last fiscal year.

During the month of November, the foreign private investment into the country amounted to $50.6mn, out of which, $135.6mn was attributed to direct investments, whereas disinvestment of $84.9mn was attributed to equity securities i.e., a part of portfolio investments. Within the Direct Investments, there was an inflow of $220mn and an outflow of $84.4mn during the month.