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Sunday May 26, 2024

FDI inflows rise 7.1pc in July-Oct

By Our Correspondent
November 21, 2023
Representational image. — Unsplash
Representational image. — Unsplash

KARACHI: Foreign direct investment (FDI) inflows increased by 7.1 percent to $524.7 million in the first four months of the current fiscal year, the data from the State Bank of Pakistan (SBP) showed on Monday.

FDI inflows into the country in October totaled $122 million, a 13 percent decrease from $140 million in the same month last year. According to SBP data, investment inflows from Hong Kong increased by a staggering 103 percent to $107 million in July-October FY2024, while investments from China, which accounts for the largest portion of Pakistan's overall FDI, decreased by 17 percent to $158 million. Companies from the Netherlands invested $56 million in Pakistan from July to October of FY2024, a substantial increase from the $9 million they invested in the same period a year earlier.

FDI inflows into the oil and gas exploration industry increased to $68 million from $19 million the year before. However, FDI in the power sector decreased by 6 percent to $248 million between July and October of FY2024. Furthermore, foreign investments in Pakistan's banking sector fell by 27 percent to $53 million.

Pakistan secured a deal with the International Monetary Fund (IMF) last week that would pave the way for the release of a $700 million tranche in December. According to analysts, the IMF's deal will help improve foreign investor confidence in Pakistan's economy. To encourage foreign investment in Pakistan, the government established the Special Investment Facilitation Council (SIFC).