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.
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.