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FDI soars 12pc to $798m in five months

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Highest FDI amounted to $153 million came from the Netherlands, $149 million from China and $129.9 million from the US during July-November FY2021-22: SBP

KARACHI: Growth in foreign direct investment (FDI) in Pakistan has been recorded 12 percent during the five months (July-November) of the ongoing fiscal year 2021-22.

However, on month-on-month basis, FDI has nosedived massive 39 percent, down from $223 million in October 2021 to $136 million in November 2021, State Bank’s data shows.

Cumulatively, Pakistan fetched FDI amounting to $797.7 million during July-Nov of FY22 as against $710.3 million in the same period of the previous fiscal year (FY21), an increase of $87.4 million or 12 percent YoY.

During the period under review, overall FDI inflows were $1,185.4 million against $387.7 million outflow.

On the other hand, portfolio investment registered a downward trend with an outflow of $263.2 million during July-Nov of FY22.

According to the SBP, total foreign investment in Pakistan, comprising foreign direct investment, portfolio investment and foreign public investment, stood at $455.5 million during the first five months of FY22, as compared to $263.4 million in same period last year, an increase of $191.9 million.

Country-wise analysis revealed that the highest FDI amounted to $153 million, and came from the Netherlands in the first five months of FY22, up from $34.9 million inflows recorded in the same period last fiscal.

China’s direct investment in Pakistan fell sharply 56 percent during this fiscal year. However, China is still the second largest investing country with an investment of $149 million in the first five months of this fiscal year compared to $337.1 million in corresponding period last fiscal year.

Meanwhile, with a 325 percent increase, some $129.9 million direct investment was received from the United States during the July-Nov of this fiscal year versus $39.9 million investment in the same period last fiscal year.

Sector-wise, power sector attracted highest net FDI of $229.2mn (29.2 percent of total FDI) during 5MFY22, followed by financial business $155.7mn (20 percent), oil & gas exploration $110.7mn (14 percent), and communication $100.8mn (13 percent).

During the month of November, the foreign private investment into the country amounted to $50.6mn, out of which, $135.6mn was attributed to direct investments, whereas disinvestment of $84.9mn was attributed to equity securities i.e. a part of portfolio investments.

Within the Direct Investments, there was an inflow of $220mn and an outflow of $84.4mn during the month.

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