FDI creeps up 6% in Jul-Feb | The Express Tribune


Foreign direct investment (FDI) in different sectors of Pakistan’s economy rose 6% to $1.26 billion in the first eight months (July-February) of current fiscal year.

According to data released by the State Bank of Pakistan (SBP) on Thursday, the country had received $1.18 billion in the same period of previous fiscal year.

Speaking to The Express Tribune, AA Gold Commodities Director Adnan Agar said that the increase in FDI in the first eight months of FY22 was encouraging because it meant that diverse sectors were attracting the interest of foreigners.

“Although the investment in stock market remained flat, the industrial sector outperformed in the months under review,” he said.

Pak-Kuwait Investment Company Head of Research Samiullah Tariq stated that the inflow of foreign investment was being witnessed since the reduction in Covid-19 cases in Pakistan in the middle of previous year.

Read: Consistency of IT policies key to attracting FDI

Talking about sector-wise inflows, he added that a major chunk of foreign investment entered oil and gas exploration and financial sectors.

On the other hand, the inflows into the power sector slowed down.

“Communication sector, which recorded an outflow last year, attracted modest investment this year,” he said.

A report of Arif Habib Limited stated that FDI during February 2022 registered a net inflow of $91 million (down 34% year-on-year) compared to $137 million in February 2021.

Country-wise data

In the first eight months of fiscal year 2021-22, China remained the largest foreign investor in Pakistan with net inflows of $384.5 million. However, it was lower than the investment of $522.7 million in the same period of previous fiscal year.

The US ranked second with an investment of $174.9 million in the period under review against $84.2 million in the same period of previous fiscal year.

It was followed by Hong Kong whose investors poured $130.3 million in the first eight months of FY22 against $105 million in the corresponding period of previous fiscal year.

Investors from Switzerland injected $80.4 million into Pakistan. It was higher than the investment of $57.3 million in the same period of fiscal year 2020-21.

Sector-wise investment

Power sector attracted the largest investment of $429.6 million in the eight months under review against $601.6 million in the same period of previous fiscal year.

It was followed by financial business, which got $275 million in foreign investment. The sector had attracted $173.4 million in the same period of previous fiscal year.

Communications sector staged a turnaround as it attracted $185.3 million against the outflow of $24.2 million in the same period of previous fiscal year.

Published in The Express Tribune, March 18th, 2022.

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