close
Advertisement
Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!
July 18, 2020

FDI jumps 88pc to $2.561bln in FY20

Business

July 18, 2020

KARACHI: Foreign direct investment (FDI) in Pakistan jumped 88 percent in the fiscal year of 2019/20, with most of the inflows going into power and communications sectors, led by China, numbers released by State Bank of Pakistan (SBP) showed on Friday.

Pakistan attracted $2.561 billion FDI in July to June FY2020, compared with $1.362 billion in the previous fiscal year.

The direct investment, however, was lower than the government’s target of $4.34 billion set for FY2020. This was due to the COVID-19 pandemic’s negative impact on investments that were felt strongly.

The FDI was up 70.53 percent year-on-year to $174.8 million in June. It stood at $102.5 million during the same month of last fiscal year.

The SBP data showed that China remained the largest investor with a net FDI of $844.1 million in FY2020, followed by Norway (402 million) and Hong Kong ($190.7 million).

FDI in the power sector attracted $764.3 million foreign capital in July-June FY2020. However, investors pulled out $323.9 million from this sector in FY2019. The increase in the FDI in energy companies is attributed to an ongoing work on the CEPC-related projects especially in the thermal and coal-fired projects. Eight energy projects have been completed and nine are currently under construction.

Communications sector inflows in the FY2020 stood at $663.9 million, while the communications businesses saw an outflow of $55.7 million a year earlier.

Foreign funds managers pulled $241.3 million from the government securities such as treasury bills and Pakistan Investment Bonds in FY2020. That compared with $1 billion outflows in FY2019. Outflows from the stock market stood at $281.7 million, compared with $415.2 million in previous year.

Total foreign investment amounted to $2.038 billion in FY2020 against the outflows of $54.8 million in FY2019.