February 22, 2021 (MLN): The country attracted $1.145 billion of net FDI during July-Jan FY21, with China, Netherlands and Hongkong appeared as the top three investors in Pakistan with net FDI of $402.8 million, $122 million, and $105.2 million respectively.
However, in the month of January 2021, Netherlands emerged as the largest direct foreign investor in Pakistan, with a net direct investment of $49.6 million, followed by China and United Kingdom who invested $43.9 million and $20.8 million net respectively, according to SBP data issued.
The FDI from China and Hongkong was 20% and 12% lower in July- January FY21, compared to the net inflows of $502.6 million and $119.4 million respectively in the same period of FY20. While the inflows from the Netherlands were almost doubled when compared to the inflows during Jul-Dec FY20. The inflows from the Netherlands jumped by 100% YoY compared to the net FDI of $61 million recorded during 7MFY20.
On the other hand, investors from Norway showed the largest disinvestment of $25.8 million during 7MFY21, however, during the corresponding period last year, the country invested $288.5 million as FDI.
Other important investors were the United Kingdom (UK), United States (US), and Malta with a net FDI of $83.8 million, $73.5 million, and $60.6 million respectively. The Inflows from the US and UK surged by 47% and 22% YoY respectively when compared to Jul-Jan FY20 while the inflows from Malta recorded a decline of 53% YoY in 7MFY21.
Moreover, Foreign Portfolio Investment (FPI), which represents an investment in the equity market has shown a negative picture, as net FPI outflows during the period under review stood at $390.3 million compared to the inflows of $1.86 billion recorded in the same period last year. The UK emerged as the biggest withdrawal of portfolio investment during the period, as it withdrew $176.6 million during 7MFY21, followed by the US with $133.9 million.
Meanwhile, UAE appeared as the largest contributor in portfolio investment with $138.9 million.
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