Net foreign direct investment (FDI) in Pakistan more than doubled year-on-year (YoY) in January 2023 to $222.6 million, up from $110 million in the same month last year.
According to data released by the State Bank of Pakistan, the surge was driven by a big drop in outflows combined with an increase in foreign inflows. Foreign outflows were $21.6 million in January 2023, compared to $71.6 million in the same period last year.
FDI fell 44.2 percent to $683.5 million in the first seven months of the current fiscal year (July-January). In the same period of the previous fiscal year, Pakistan reported an FDI of $1.22 billion.
China emerged as the single largest investor by country, with $68.4 million poured into Pakistan in January. According to SBP data, Japan came in second with $59.7 million, followed by Switzerland with $16.7 million.
Sector-wise data reveals the power sector attracted $78.1 million, with $58.4 million going toward coal-based projects. This was followed by the food sector, which invested $56.9 million, and the financial sector, which invested $48.7 million.
The mining and quarrying sector saw a $232.1 million withdrawal in the first seven months of the fiscal year compared to the same period last year.
Analysts suggest that investment inflows have been affected due to international and domestic economic and political unrest however once the dust settles, the inflows are likely to come in abundance.
