Global Economy

FDI in Pakistan down by 27% in first seven months; investment from China dwindles: Report

Foreign direct investment in Pakistan has seen a 27 per cent decline in the first seven months of the current fiscal, owing mainly to the fall in investment from its close ally China, a media report said on Tuesday.

The Foreign Direct Investment (FDI) in Pakistan during the first seven years fell by 27 per cent compared to the same period last fiscal year, Dawn newspaper reported, quoting the State Bank of Pakistan (SBP) as saying.

The SBP, the central bank, on Monday said that the FDI during July-January FY-21 was $ 1.145 billion against an inflow of $ 1.577 billion in the same period last fiscal year.

The inflow during January was $ 192.7 million compared to $ 219 million in the same month of the previous fiscal year, registering a 12 per cent decline.

However, the seven-month decline was mainly due to a decline in net FDI from China and increase in net outflow to Norway, the report said.

The country-wise details showed that net inflow of FDI from China was $ 402.8 million against $ 502.6 million in the same period of last fiscal year.

So far, the net FDI from China is the highest in the list of inflows from other countries.

The inflows from China were $ 707.2 million during the seven months but the outflow of $ 304.4 million in the same period reduced the net FDI to $ 402.8 million.

Others from where over $ 100 million net FDIs were received were the Netherlands and Hong Kong, as they invested $ 122 million and $ 105 million, respectively, during the first seven months of FY21.

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The inflows of FDI from the UK ($ 83.8m), the US ($ 73.5m) and Malta ($ 60.6m) were also significant during the seven months.

However, a drastic change in the inflows from Norway affected the overall inflow of FDI this year.

The SBP data shows that during the seven months of the previous fiscal year, the inflow from Norway was $ 288.5 million, while in the seven months of the current financial year a net outflow of $ 25.8 million was noted instead of any inflow from the Scandinavian country.

The power sector attracted the highest investment of $ 475.8 m against $ 373 m in the same period of last financial year; an increase of 27.6 per cent.


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