Pakistan's Power sector attracts highest net FDI of $194.16m in April

May 17, 2024 (MLN): Pakistan’s Power Sector witnessed the highest net Foreign Direct Investment (FDI) worth $194.16 million in April 2024, as per the latest data released by the State Bank of Pakistan (SBP).

The second and third highest rank was held by the Mining & Quarrying and Storage Facilities sector as they experienced a net inflow of $51.91m and $50.59m respectively from foreign investors in the review month.

On the other hand, the sector that witnessed the biggest net outflow was the Communications sector as foreign investors withdrew an amount of $9.84m.

In the ongoing fiscal period (10MFY24), the Power sector has ranked first in terms of the highest net FDI of $637.55m, compared to an inflow of $776.25m recorded in 10MFY23.

This was followed by the Oil & Gas Explorations sector which attracted a net FDI of $192.54m during the review period as against $114.09m in the previous fiscal year.

The third-highest net FDI receiver was Financial Business sector with cumulative net inflows of $169.61m, showing a drop of 30.31% YoY as the sector observed $243.39m net foreign inflows in SPLY.

Analyzing further, the sector that experienced the highest divestment was the Communications sector, as the FDI balance for this sector stood at negative $126.55m in 10MFY24, compared to negative $181.65m in 10MFY23.

The Transport Equipment(Automobiles) sector was the second sector in line to record divestment through FDI of $6.56m, against an outflow of $11.61m incurred in the SPLY.

Furthermore, the Leather & Leather Products sector also faced a divestment of $1.45m in 10MFY24, significantly down as in 10MFY23, the withdrawal stood at $1.45m.

It is crucial to mention that in April, FDI in the country clocked in at $358.84m.

On a cumulative basis, within 10MFY24, FDI has increased to $1.46bn as compared to Foreign investment of $1.35bn reported in the corresponding period last year.

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