Foreign Direct Investment (FDI) to Pakistan has dropped to $717.1 million during the first five months of the fiscal year 2020-2021, according to data released by the State Bank of Pakistan. This represents a drop of 17 percent when compared to the same period last year.
FDI attracted by Pakistan during the first five months of the fiscal year 2019-2020 stood at $864.4 million.
While there has been a healthy flow of remittances from overseas Pakistani courtesy of the Roshan Digital Account, which attained its highest amount in a single day almost a week ago, the inflow of foreign investment has been deplorable.
Back in November, there was a sudden drop in FDI inflows to Pakistan largely because the country pulled out of investment deals with China and Norway. Therefore, while the FDI inflows for November 2019 stood at $192.4 million, Pakistan ended up facing outflows worth $16 million during the same month this year.
China pulled out $218.6 million, while Norway retracted $55.8 million from Pakistan last month.
Norwegian firms also took away $26.6 million in July-November FY2021 against the inflow of $318.5 million in the same period last year.
However, despite the outflows, net FDI from China remained positive for the overall five months of the current fiscal year, reaching a stable $253.9 million for July-November FY2021. As compared to the same period in 2019, this is approximately three times higher, as last year’s count stood at $76.5 million.
The power sector remains the biggest beneficiary of FDI, as it fetched $269.2 million in July-November FY2021 as compared to $66.6 million last year. On the other end of the scale is the telecommunication sector, with an FDI inflow of a mere $11.4 million during the first five months of the current fiscal year, which is a huge drop from the $333.2 million that it raked in last year.
The Indian Army has been granted direct authority to manage social media content concerning its…
In an extraordinary accomplishment for Pakistani academia, 43 researchers from the National University of Sciences…
The Khyber Pakhtunkhwa (KP) government has officially informed the federal government of its intention to…
The Pakistan Telecommunication Authority (PTA) has issued a stern advisory, warning citizens against investing in…
Economic challenges are prompting skilled workers to leave Pakistan, resulting in a significant talent drain…
A Russian court has fined Google for blocking state-run media channels on YouTube, imposing a…
Leave a Comment