Foreign Direct Investment (FDI) in Pakistan Sees 29% Year-on-Year Plunge in April

Foreign Direct Investment (FDI) in Pakistan Sees Sharp Decline of 29% YoY in April

Foreign Direct Investment (FDI) in Pakistan experienced a significant decline of nearly 29% year-on-year, reaching $121.6 million in April, according to data released by the State Bank of Pakistan (SBP). The figures also indicate a 23% drop in FDI during the first 10 months of the current fiscal year (2023-24).

In April, FDI amounted to $121.6 million, down from $170.6 million recorded during the same period in the previous year, reflecting a substantial decrease of 28.8%. From July to April of the fiscal year 2022-23, foreign investment in FDI totaled $1,170 million, compared to $1,523 million attracted during the corresponding period in the previous fiscal year, representing a decline of 23%.

The SBP data reveals that China remained the largest investor with an FDI of $348 million during the first 10 months of FY23. However, this amount was lower than the $403 million invested by China during the same period the previous year. Japan ranked second with $162 million in FDI from July to April of FY23, which is a significant improvement compared to a net withdrawal of $10 million during the same period last year.

Other notable investors included Switzerland ($132 million), UAE ($110 million), the United States ($101 million), and the Netherlands ($61 million). On the other hand, Australia withdrew $238.6 million during the review period, as indicated by the SBP data.

Economic analysts express concerns that foreign inflows into Pakistan may not see improvement in the upcoming months if the ongoing political crisis persists.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button