Foreign Direct Investment Up by 16% in February 2024

The Foreign Direct Investment (FDI) in the country increased by 16 percent year-on-year (YoY) to $140 million in February 2024, compared to $122 million in February 2023.

According to data released by the State Bank of Pakistan (SBP), net foreign direct investment during 8MFY24 stood at $867 million, down 12 percent YoY compared to $983 million reported in 8MFY23.

Portfolio investment registered inflows of $46 million in 8MFY24 compared to outflows of $7 million in 8MFY23. Foreign public investment reported inflows of $65.5 million in 8MFY24 compared to outflows of $1.01 billion in 8MFY23. The total foreign investment stood at $932.4 million in 8MFY24 compared to outflows of $27.2 million in 8MFY23.

Foreign public investment in February 2024 was $6 million compared to zero inflows in February 2023.

Foreign investors pulled out $46 million of their money in February 2024, compared to outflows of $39 million in the same period last year.

During the 8 months in review, China emerged as the single largest investor by country, with $429.4 million poured into Pakistan. According to SBP data, Hong Kong came in second with $234.6 million, followed by the United Kingdom with $169 million.

Sector-wise data reveals the power sector attracted $604.1 million, with $226.4 million going toward coal-based projects and $302.9 million in Hydel power. This was followed by the Financial Business sector, which invested $178.7 million, and the Oil & Gas Exploration sector, which invested $153.9 million.