Pakistan records 62pc decline in foreign direct investment in October

Karachi: Net foreign direct investment (FDI) in Pakistan plunged 62 per cent to $95 million in October 2022, compared to $247.3 million recorded in the same month last year, the State Bank of Pakistan (SBP) statistics showed on Monday.

The net FDI was up 13% vis-a-vis $84 million recorded in September 2022.

Moreover, during 4MFY23, net FDI dropped 52% year-on-year (YoY) to $348 million as compared to $726 million in July-October FY2022.

During July-October FY23, FDI inflows were $514.5 million against the outflow of $166.2 million.

Overall investment from China fell 27% in the first four months of FY2023. China contributed 14.5% to the total share with a net FDI of $74.8 million as compared to $102 million invested in the same period last year.

The UAE was the second-largest investor with a 13% share. Its investment in Pakistan jumped 27.7% to $69 million against $54 million in the same period last year.

In the July-October period, the energy sector drew the major share of investment of around 30% or $155.5 million followed by the financial business sector with $97.5 million, and oil and gas exploration attracting $18.5 million.

FDI remained sluggish amid inflows worth $1.5 billion from the Asian Development Bank and a World Bank announcement of $1.3 billion in financial support.