Foreign Direct Investment from China Doubles in FY19

China remained the biggest contributor of foreign direct investment in Pakistan showing almost 100 percent growth in inflows in the first half of the financial year 2019-20 compared to the corresponding period last year.

According to the State Bank of Pakistan’s statistics, FDI from China in various sectors grew to $422.3 million during the period of July to December 2019 as against $211.3 million reported in the same months last year.

FDI from China is expected to increase in the comings months as projects under phase 2 of China Pakistan Economic Corridor (CPEC) will be in full swing.


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China was followed by Norway with inflows of $288 million recorded from the European country. Malta, a southern European country is the third biggest contributor in the real estate sector with FDI inflows recorded in the tune of $111 million.

United Kingdom, Hong Kong, and USA are other notable contributors of FDI.

The FDI in the real estate sector recorded a handsome growth of 68 percent to reach $1.34 billion in the first half of 2019-20.

Major sectors that received FDI are telecommunication with $419 million, power sector with FDI of $289 million, financial business with $162 million, electrical machinery with $117 million, and oil and gas with $113 million.

FPI Receives Handsome Inflows

Foreign Portfolio Investment (FPI) recorded an outflow of $684 million in the last month which decreased from $1 billion in December 2019. FPI inflows stood at $452 million by the end of December 2019.

The overall net FDI includes investment in the real sector and FPI stands at $1.811 billion in the first half of FY20 showing a 380 percent growth from the figures of last year.



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