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Foreign investment decreased by 30 percent


KARACHI: Foreign direct investment (FDI) fell by 30 per cent within the half of the present financial year , reflecting the impact of Covid-19 that’s still affecting the country also as global economies.

The State Bank’s latest data issued on Monday showed the country received $952 million foreign investment during July-December FY21 compared to $1.357 billion within the same period of last financial year .

In FY20, Pakistan managed to enhance its diary because it received $2.561bn FDI compared to $1.362bn within the preceding year. However, the pandemic drastically impacted global economies suppressing any chance for Pakistan to draw in huge amounts of foreign investment.
The impact of heavy outflow from portfolio also played a key role in making the record poorer within the half of FY21. the info shows that the outflow during July-December was $244m compared to a net inflow of $18.8m within the same period last year .

Inflows from China also shrink in July-December

The breakup further shows that China made 38pc contribution to the general $952m FDI the country received in July-December period of FY21. However, the FDI inflows from China also contracted to $359m within the period under review compared to $396m within the same period of last financial year .

Beijing has been the main investor in Pakistan for the past few years.

The negative side of FDI trend was the shrinking contribution of other countries.

The other significant contributions were from the us and UK at $65m and $63m, respectively, both improved from $44m and $58m within the same period of last financial year .

The United Arab Emirates (UAE), which was once the most important trade partner of Pakistan, has started disinvesting love it did in six months of FY20 when the entire outflow was $27m. However, in July-December FY21, the inflow was $16.3m.

The inflows from Hong Kong , Malta and therefore the Netherlands were $86m, $56m and $72m respectively.

The country received the very best foreign investment of $261m in electricity, gas, steam and air con supply sectors. While an inflow of $137m was noted in financial and insurance sectors.


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