Foreign direct investment in Pakistan declines 17% in 8MFY24

Power sector leads with 30% of total foreign investment, amounting to $249 million

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. 

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

Important issues need to be addressed as Pakistan engages for new...

Georgieva highlights the tax base, public spending, and a transparent environment as issues the country needs to solve