Foreign Direct Investment Up by 16% in First 2 Months of FY24

The Foreign Direct Investment (FDI) in the country rose by 16 percent during the first two months of this fiscal year (FY24).

According to the State Bank of Pakistan (SBP), the country received FDI amounting to $234 million during the first two months of FY24 compared to $201 million in the same period last year, showing an increase of 16.1 percent or over $32 million during July-Aug of FY24.

According to SBP, some $ 146 million worth of FDI was received in August 2023 versus $ 127 million in SPLY.

Portfolio investment stood at $ 22.7 million in July-Aug of FY24 against -$6.7 million in the same period last year. During the period in review, foreign public investment rose to $ 3.9 million against -$18.2 million in July-August FY23.

The total foreign investment including foreign direct investment, portfolio investment, and foreign public investment registered a growth of 48 percent or $84 million to $260.4 million in July-Aug of FY24 compared to $176.4 billion last year.

FDI into Pakistan has been on the decline for the past months. It sharply declined by 25 percent to $1.456 billion in the last fiscal year. However, now once again, FDI is presenting an improved picture.

The surge in FDI is mainly due to some Chinese investment in CPEC-related projects. China is the largest contributor in the FDI with a $50.4 million investment during July-Aug of FY24.

The Netherlands ranked second with $42 million, while Switzerland invested $36 million in Pakistan.

Source: Pro Pakistani