Foreign direct investment in Pakistan declines 17% in 8MFY24

Net Foreign Direct Investment (FDI) in Pakistan fell by 17.1% in the first eight months (July-Feb) of fiscal year 2024, totaling $820.6 million, according to the latest data released by the State Bank of Pakistan (SBP). 

FDI was recorded at $1.570 billion from July to February of FY24 compared to net FDI of $990.2 million during the same period of last fiscal year. Meanwhile, an outflow of $750.3 million was also reported. 

February 2024, however, marked a 16% increase in net FDI to $131.2 million, compared to $113.4 million in February 2023. Notably, January experienced a significant FDI outflow of $173.2 million.

Chinese investment plummeted by nearly 83% to $80.4 million, down from $472.4 million the previous year. In contrast, Hong Kong’s investment surged by 56% to $234.6 million, constituting 29% of total FDI.

The power sector led with 30% of the total investment, amounting to $249 million, followed by the oil & gas exploration and financial business sectors.

This investment trend occurs amid efforts to bolster foreign exchange reserves in response to a dollar shortage.