Pakistan’s FDI up by 7% in first four months of FY2023-24

Pakistan has received $524.7 million in foreign direct investment (FDI) during the first four months (July-October) of the current fiscal year 2023-24, showing an increase of 7.11% compared to the same period of the previous year, according to the latest data released by the State Bank of Pakistan (SBP).

The FDI inflow in October 2023 was recorded at $122.46 million, down by 29.05% from $172.6 million in September, which was also lower than the $193.6 million recorded in August 2023.

However, on an annual basis, FDI was slightly higher than the $120.8 million recorded in October 2022.

The main sources of foreign direct investment in Pakistan during the four-month period were China ($194.2 million), Norway ($77.1 million), and the United States ($65.9 million).

Power sector received above all $139.7 million FDI, oil and gas exploration sector attracted $87.8 million, and financial business sector recorded $85.9 million investment.

The SBP data also showed that the portfolio investment, which includes equity securities and debt securities, recorded a net inflow of $14.1 million in the four-month period, compared to a net outflow of $11.4 million in the same period of the last fiscal year.

The total foreign private investment, which comprises FDI and portfolio investment, amounted to $538.8 million in the four-month period, up by 17.81% from $457.3 million in the same period of the last fiscal year.

The foreign public investment, which includes official loans and grants, stood at $2.95 million in October 2023, bringing the total foreign investment in the country to $126.79 million for the month, down by 7.88% from $137.64 million in October 20223.

The SBP data also revealed that the FDI outflow from Pakistan during the four-month period stood at $35.8 million, mainly due to the repatriation of profits and dividends by foreign investors.