Foreign direct investment (FDI) fell by over 32 per cent during the 10 months of the current fiscal year compared to the same period in the previous financial year.
However, data released by the State Bank of Pakistan (SBP) on Friday showed the country received $1.553 billion FDI during July-April FY21 against the inflows of $2.301bn in the same period last financial year — a decline of $748 million, or 32.5pc.
Foreign private investment, including portfolio investment, stood at $1.273bn, showing a decline of 40pc compared to last year.
The outflow of portfolio investment during the 10 months of the current fiscal year was $280m compared to an outflow of $182m during the same period last year.
The inflows from China during the 10-month period also fell to $708m compared to $865.3m FDI from Beijing during the same period last year.
The second biggest inflow of $127.6m the country received was from Hong Kong. However, the FDI from the same country in the same period last financial year was $163.5m.
The FDI from the UAE, which is the second largest trade partner of Pakistan, sharply increased this year to $86.6m. During the same period last year, there was a net outflow of $31m from Pakistan.
The FDI witnessed slight improvement in April as it was higher than the same month of the last fiscal year. The inflow in April 2021 was $158m compared to $151m in the same month last year.
The country’s external account is in a much better shape compared to the previous two years and this could boost the confidence of the foreign investors.