Foreign direct investment (FDI) into the country witnessed 20-month high inflows of $271.1 million in June despite political uncertainties.
According to the State Bank of Pakistan (SBP), FDI in June 2022 was 92 percent higher compared to $141.2 million in the prior month of May 2022 and compared to $141.3 million in June 2021.
The overall foreign direct investment (FDI) amounted to $1.87 billion in the fiscal year 2021-22 (FY22), which was 2.6 percent (or $43.7 million) higher compared to $1.82 billion in FY21.
China made the single largest investment of a net $532 million in Pakistan in FY22, followed by the United States which injected a net $250 million during the year.
Switzerland invested a net $146 million during the year and UAE poured a net $144 million. Hong Kong invested a net $138 million, Singapore injected a net $115 million, while the Netherlands invested a net $104 million during the FY22.
The power sector attracted the single largest foreign investment worth $738 million during FY22, followed by the financial business which received a net investment worth $405 million during the year.
The oil and gas exploration sector won a net investment of $195 million, while the communication sector saw a net foreign investment of $119 million during FY22.
During the period, the foreign portfolio investment (FPI) showed a mixed trend. Investment in debt securities stood at $309 million during the closing financial year whereas the investment in equity securities showed an outflow of $388 million.
High-profit rates attracted investment in bonds, on the other hand, the political and economic uncertainties continued to hurt the sentiments of the equity investors who pulled out their money from the stock exchange.
The overall investment in the country including FDI and FPI decreased to $1.78 billion in FY22 as against $4.58 billion reported in FY21, showing a massive decline of 61 percent year-on-year.
