Foreign direct investment jumps by 31pc to $1.1bn
KARACHI: Foreign direct investment (FDI) surged by over 31 per cent during the first five months of the current fiscal year.
The State Bank’s latest data on Tuesday showed that the country received $1.123 billion FDI during July-Nov FY25 against an inflow of $856m in the same period last year, an increase of 31.3pc or $267 million. The country received $219m FDI in November alone.
The increase looks robust, but the inflow size is still disappointing, particularly in the wake of the government’s laud effort to bring sizable foreign investment.
On 20 June 2023, the government approved the establishment of the Special Investment Facilitation Council, a single window to facilitate investors, establish cooperation among all government departments, and fast-track project development. However, the council has yet to be able to deliver the desired results.
Financial experts believe foreign investors feel it risky to put their money in Pakistan amid unending political uncertainty. Some macro indicators have shown improvement, but foreign investors, particularly new ones, would need to find the ground reality attractive enough to land in Pakistan.
The country-wise investment shows China remained the largest investor as inflows totalled $469m in 5MFY25 against $293m last year.
The inflow from Hong Kong was $115.7m compared to $80.3m. Other important inflows were $113m from the UK and $66m from Switzerland.
Published in Dawn, December 18th, 2024