Pakistan FDI increased in May by 63% to $198.3 million. Major inflows came in the communications, trade and the power sectors.
This increase, although not very heavy in amount, does signify an improvement of foreign investors’ confidence and view on Pakistan which itself is due to the economy picking up, better fiscal space for the GOP in reserves and deficits and continuity with the International Monetary Fund program. Adding to this is the overall improvement in the COVID situation which is backed by better immunity and accelerated vaccine rollout throughout Pakistan.
Pakistan’s FDI break up is: the communications sector received $73.8 million, the trade sector received $54.5 million and the power sector received $44.3 million. Norway is currently the main investor with $60.2 million brought in (last: $57.5 million). Flows from Holland increased to $53.2 million (last: $15.3 million).
For the 11 month period July – May of FY21, the FDI into Pakistan was down down 27.7% to touch $1.75 billion (last: $2.42 billion). The main reasons for the fall in FDI was the COVID effect which was higher in the earlier part of the year, and which became intense with the 3rd wave of COVID. The FDI breakup is:
– Net FDI from China decreased $728 (last: $843 million)
– Hong Kong was $138 million (last: $168 million)
In the 11 month period, the power sector was the main attraction with $856 million coming in (last: $736 million), financial sector got $227 million (last: $257 million), oil and gas sector got $206 million (last: $275 million).
Quarterly Review Video.
Leave a Reply