FDI drops to $59 million in July

By Staff Reporter

KARACHI: Pakistan’s foreign direct investment (FDI) fell 43 percent to $59 million in July from $103.8 million same period last a year ago, the central bank data showed on Wednesday.

The FDI saw a 78 percent decline on a month-on-month basis. It amounted to $271 million in June.

State Bank of Pakistan’s data showed that the financial sector attracted $27.7 million in FDI from global investors in the first month of the current fiscal year, which was lower when compared to $36 million in the corresponding month of last year.

Investment in the gas and exploration sector dropped to $2.7 million from $19 million.

Direct investment in the communications sector also fell to $10.6 billion from $14.9 billion.

The investment in the power sector rose to $30.6 million in July from $26.5 million a year earlier.

Investment flows from the UAE increased to $13 million from $3 million, and investment by Swiss firms rose to $12 million from $11 million. However, FDI from China fell to $5 million from $3 million.

The low private sector flows like the FDI and portfolio investment is a key concern for the government, but analysts expect that the revival of the International Monetary programme likely later this month, will improve the global investor confidence in Pakistan’s economy.

The FDI rose only 3 percent to $1.868 billion in the last fiscal year of FY2022.