Foreign direct investment falls in negative territory

Pakistan’s net Foreign Direct Investment (FDI) stood negative at $16 million in November 2020 compared to positive $192.4 million in the same month of last year, data released by the State Bank of Pakistan showed.

FDI has become negative after a gap of two years, as power and telecom firms operating in Pakistan apparently had to transfer funds to their parent companies in China and Norway, respectively.

Short-term investors were, however, seen again making small investments in the government debt securities like treasury bills and Pakistan Investment Bonds (PIBs) in November.

Cumulatively, in first five months (Jul-Nov) of the current fiscal year (2020-21), net FDI dropped 17pc to $717.1 million compared to $864.4 million in the same period of last year.

Must Read

Honda and Nissan consider mutual production of vehicles, Kyodo reports

Automakers explore deepened collaboration, including shared production and hybrid vehicle supply, amid strategic challenges and shifting global trade dynamics