Foreign Direct Investment (FDI) In Pakistan Declines 30% in 8 Months

In the month of February 2021, Pakistan fetched $155 million worth of net foreign investment.

US Dollar Notes.

The net inflow of FDI (foreign direct investment) declined 30% during the first eight months (July–February) of the current financial year (2020-21).

The decrease was due to a significant increase in outflows.

This was revealed via the data released by the State Bank of Pakistan (SBP) on Wednesday.

According to the report, the FDI fell to $1.3 billion during the first eight months of the current fiscal year compared to $1.85 billion in the corresponding months of last year.

“Inflows under this head declined 16% to $1.98 billion during July-February FY21 as compared with $2.36 billion in the corresponding period of last year.”

“However, outflow under this head increased 35% to $683 million during the period under review as compared with $507 million last year,” the SBP stated.

Chinese Renminbi Notes.

The overall inflow of private foreign investment fell 43% to $1.04 billion during the period under review compared with $1.83 billion last year.

The portfolio investment from the equity market witnessed massive outflows during the period.

The portfolio investment saw an outflow of $256 million in 8MFY21 compared to $26.3 million in the same period of last year.

Foreign public investment recorded an outflow of $132 million during the period under review compared with inflows of $2.16 billion last year.

Hong Kong Dollar Notes.

China, Netherlands, and Hong Kong remained the top three investors in Pakistan with net FDI of $494 million, $117.8 million, and $106.3 million, respectively.

In the month of February 2021, Pakistan fetched $155 million worth of net foreign investment.

China emerged as the largest investor in Pakistan, with a net direct investment of $91 million, followed by the UK and Germany, who invested $11.5 million and $8.5 million, respectively.

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