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Foreign Direct Investment plummets 5% in first 11 months of FY22

KARACHI: The country’s Foreign Direct Investment (FDI) has seen a steep decline as international companies proceed with caution towards investing in Pakistan. The State Bank’s report stated a 5 percent decline in the first 11 months of the fiscal year 2021-22.

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From July to May of the current fiscal year, the FDI has receded to $1.597 billion from the previous fiscal year’s $1.67 billion, according to the data released by the State Bank of Pakistan (SBP).

May 2022 saw the sharpest decline as foreign investments saw a net inflow of $141 million, compared to $199 million during last year’s May, resulting in a decrease of 29 percent.

The largest amount of foreign investment came from China, with a net FDI of $373 million during the first 11 months of FY22. However, the previous fiscal year saw an inflow of $720 million from Chinese companies during the same duration, indicating a massive decline of 51 percent.

FDI from the United States doubled with a net in-flow of $241 million in FY22, compared to $122 million during the same period in the last fiscal year.

Overall, the country’s net foreign investments have seen a drop in inflow by 58.8 percent, decreasing from $3.85 billion to $1.8 billion in the current fiscal year.

Ahmed Rehan

An editor and writer at Graana.com, Ahmed Rehan Nasir has a passion for creating engaging and informative content. With years of experience in the industry, Rehan has honed his writing skills and developed a deep understanding of SEO practices, crafting content that resonates with diverse audiences.

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