Ahmed Mukhtar Naqshbandi
ISLAMABAD: Net foreign direct investment (FDI) in Pakistan soared last month as it more than doubled to 222.6 million dollars against 110 million dollars in January 2022.
The increase in FDI was led by a considerable contraction in investment outflow along with a jump in foreign inflow. The foreign outflows stood at 21.6 million dollars in January 2023 as opposed to 71.6 million dollars in the same period last year, the data disclosed by the State Bank of Pakistan showed.
China is the single largest investor with 68.4 million dollars poured into Pakistan in the last month. Japan followed with 59.7 million dollars and Switzerland with 16.7 million dollars, according to SBP data.
The power sector attracted 78.1 million dollars with 58.4 million dollars going toward coal-based projects. The food sector followed it with 56.9 million dollars in investment and financial business with 48.7 million dollars.
FDI in 7 months
FDI during the first 7 months (July to January) of the current financial year contracted 44.2 percent to 683.5 million dollars. Pakistan had reported an FDI of 1.22 billion dollars in same period of previous financial year.
According to SBP data, quarrying space, and mining saw divestment of 232.1 million dollars in the 7 months against the same period of the previous financial year. The communications sector saw divestment of 93 million dollars with 89 million dollars leaving telecommunication space alone. The Electronics sector saw a divestment of 30.1 million dollars.
