Business
Foreign Direct Investment in Pakistan plunges 24% to $223 million in October
Pakistan has reported fall in the net foreign direct investment (FDI) in different sectors like power, communications and oil and gas exploration.
The FDI dropped 24% to $223 million in October 2021 and stood at $293 million in the same period of the previous fiscal year, the State Bank of Pakistan (SBP) reported on Wednesday.
Cumulatively, in the first four months (July-October) of the current fiscal year 2021-22, FDI inflows dropped 12% to $662.1 million compared to $750.6 million in the same period last year.
The drop in foreign direct investment has placed a big question mark over the investment climate in the country.
According to economic experts, a decline in foreign investment can be attributed to volatile currency during the period.
According to Bloomberg, Pak rupee has become Asia’s worst performer in the past six months.
The government earlier predicted that Pakistan’s economy will slowly and gradually gain growth momentum, which should encourage foreign investors to invest in new projects, however, the figures do not support the claim.
The overall weak global trends were also responsible for the tepid FDI inflows into Pakistan.