Net FDI Inflows to Pakistan Cross the $2 Billion Mark

Pakistan has continued to receive handsome inflows and the net Foreign Direct Investment (FDI) crossed the $2 billion mark in the first five months of the financial year 2019-20.

The net FDI inflows during the period of July to October recorded at $1.102 billion, as inflows of $904 million received in the subsequent month of November the overall net FDI surged to $2.006 billion in the first five months of 2019-10, according to the State Bank of Pakistan (SBP).

Last year, the overall FDI received by the country stood at $146.7 million during the five months period thus the net FDI showed 1,267 percent growth year-on-year.

The net FDI comprises two heads—FDI in the real sector and FPI (Foreign Portfolio Investment)– both of which recorded positive growth in the said period.

FDI Records Staggering Growth of 78%

FDI in the real sector, a part of the net FDI, registered a staggering growth of 78 percent year-on-year during the period of July to November 2019. It increased to $850 million this year as compared to the corresponding period of last year in which it stood at $477 million.

FDI from Norway recorded the highest value of $344 million due to the investment of Telenor Pakistan. It was followed by China with an investment of $142 million for the ongoing projects under China-Pakistan Economic Corridor and UK with over $100 million.

Telecommunication is the leading sector with the highest value of FDI, that is, $280 million. It is followed by electrical machinery, oil and gas exploration, and power sectors.

FPI Receives Handsome Inflows

The foreign investors are doing their investment in short-term government bonds mainly in T-bills, which received historical high investment for the first time this year. Foreign Portfolio Investment (FPI) received handsome inflows of over $1 billion during the period of July to November 2019.