August 20, 2020 (MLN): China has retained the top position as a foreign direct investor in Pakistan, with a total investment of $27.1 million in the first month of FY21 i.e. July’20
The value of disinvestment by Chinese investors stood at $17.4 million in July’19.
Figures compiled by State bank of Pakistan (SBP) revealed that the inflows from China were recorded at $33.1 million during July’20, showing a more than a four-fold rise in foreign investment in Pakistan against $7.3 million inflows in July’19.
During Jul’20, the five largest contributors of foreign direct investment in Pakistan were China, Malta, Netherland, United States, and the United Kingdom.
Malta emerged as the second leading foreign investor in Pakistan as its net direct investment into Pakistan amounted to $18.5 million in the month of July, followed by Netherland with $18.2 million, USA with $11.2 million, and the UK with $9.3 million.
FDI inflows from the USA fell to $11.8 million in July’20 from $18.5 million in July’19, depicting a decline of 36% YoY whereas FDI inflows from the UK showed a meagre decline of 1% YoY, to $14 million in July’20.
On the other hand, Foreign Portfolio Investment (FPI), which represents an investment in the equity market shown a negative picture, as net FPI outflows stood at $7.1 million in July’20. The United States emerged as the biggest withdrawal of portfolio investment during the month, as it withdrew $50.7 million during July’20, followed by the UK with $31.1 million.
UAE appeared as the largest contributor in portfolio investment with $22 million.
