Pakistan’s foreign investment fell to $104.4 million in November, marking a significant decline from October’s $274 million, according to data released by the State Bank of Pakistan on Wednesday. The month-on-month drop highlights growing investor caution amid economic challenges.
Year-on-year comparison also showed a decrease, as $195 million was recorded in November last year. The decline signals a slowdown in foreign capital inflows, prompting authorities to explore measures to attract investors and stabilize the economy.
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Foreign direct investment (FDI) amounted to $180 million in November, down from $232 million in the same month of the previous year. The central bank noted that private sector investments remained the primary driver despite overall reduced inflows.
Private sector investment stood at $150.5 million, while $42.8 million was withdrawn from the public sector during November. This indicates that investors are favoring business-friendly sectors while withdrawing from state-led initiatives due to uncertainties.
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On a cumulative basis, foreign investment during the first five months of the current fiscal year reached $314 million, compared with $1.39 billion in the corresponding period last year. Analysts say this reflects a challenging investment climate.
Economists urge policy reforms and incentives to revive investor confidence, emphasizing the importance of stability, transparency, and strategic economic planning to prevent further decline in foreign capital inflows.