Pakistan experienced a significant downturn in foreign direct investment (FDI), recording a disinvestment of $173.2 million in January 2024, a noticeable drop from the $211.1 million direct investment in December 2023, as per the State Bank of Pakistan (SBP). This represents the highest negative FDI since October 2018.
Year-on-year comparison reveals a decrease from $236.7 million in the same period last year. The cumulative FDI for the first seven months of FY24 fell to $689.5 million from $876.8 million in the prior year.
The detailed analysis shows a 33.63% decrease in FDI inflow to $184.7 million and an outflow surge to $357.9 million. Portfolio investment outflows also increased, with $33.8 million leaving through equity securities, compared to a $1.1 million outflow in January 2023.
Foreign private divestment, including direct and portfolio investments, totaled $207 million in January 2024, down from an inflow of $235.7 million the previous year. However, foreign public investment improved, recording $59.3 million, up from $8.9 million last year.
Overall, January 2024 saw a total foreign divestment of $147.7 million, a significant shift from the $244.5 million investment in the same period last year, indicating a critical need for measures to improve Pakistan’s investment climate.
