Many bundle of US 100 dollars bank notes
The net foreign investment has shown tremendous growth in the three quarters of the financial year 2019-20 with year-on-year growth of 380 percent.
According to the State Bank of Pakistan’s data, the total foreign investment stands at $2.37 billion during the period of July to March as compared to $494 million in the corresponding period of last year.
Foreign Direct Investment (FDI) in the real sector stands at $2.14 billion with an increase of 137 percent from $905 million last year. Similarly, inflows of Foreign Portfolio (FPI) in debt securities and stock exchange stood at $331 million by the end of March of the current financial year.
FDI in March recorded an increase of $278 million whereas, FPI recorded a huge outflow of $1.83 billion from the government papers and the equity market.
FDI inflows from China were the highest at $872 million followed by Norway with $288 million. FDI from UK and USA stood at $64.9 million and $90 million respectively, with investment from both countries seeing a massive outflow in debt securities during the last month.
The power sector attracted an investment of over $750 million followed by the telecom sector with a $464 million. FDI in financial business landed at $210 million and $143 million in electrical machinery.
The inflow situation has been impressive so far in the current financial year however the global economic outlook is uncertain in 2020 due to the COVID-19 pandemic and its repercussions on the businesses and investment climate all over the world.
