FDI falls by 29% YoY in FY21

July 16, 2021 (MLN): Foreign direct investment in Pakistan stood at $135.4 million during June 2021, showing a decline of 23% MoM and 32% YoY against the net inflow of $198.3mn in April 2021 and $174.8 recorded in June 2020.

According to the data released by the State Bank of Pakistan (SBP), cumulatively, FDI fell by around 29%YoY to $1.847 billion during FY21, as compared to FDI of $2.597bn reported in FY20.

During the month of June 2021, the Foreign Private Investment into the country amounted to $626.9mn, out of which, $135.4mn was attributed to Direct Investments, whereas investment of $491.5mn was attributed to Portfolio Investments.

Under the Portfolio investments, disinvestment of $8.5mn was attributed to Equity Securities.

Within the Direct Investments, there was an inflow of $211mn and an outflow of $75.6mn during the month.  

Under the Foreign Public Investment, $97.4mn worth of investment was witnessed in debt securities during June 2021 against the disinvestment of $5.2mn recorded in the previous month.

All in all, the Foreign Investments in Pakistan during the month amounted to $724.3mn, up by a whopping 4x MoM and 3.8x YoY when compared to net inflows of $188.3mn in the previous month and $179.6mn in June 2020.

Copyright Mettis Link News