China leads as top investor in Pakistan with $568m FDI in FY24

July 24, 2024 (MLN): China emerged as the largest investor in Pakistan in fiscal year 2024 (FY24) with a net foreign direct investment (FDI) of $568.2 million, according to data issued by the State Bank of Pakistan (SBP).

The second and third highest ranks in terms of net FDI were held by Hong Kong and the United Kingdom, with net investments worth $358.51 million and $268.19 million, respectively.

It is pertinent to note that the total FDI in FY24 stood at $1.9bn, up 16.88% YoY compared to FDI of $1.63bn in FY23.

China held the majority proportion (29.88%) of direct investments in the country, however, investment from the respective country has declined substantially by 17.95% YoY when compared with the figure of $692.52m in FY23.

Hongkong’s contribution in net FDI stood at $358.51m (18.85%) in the FY24, up by 43.3% YoY compared to $250.18m in SPLY.

The third major investor during FY24, United Kingdom’s share was 14.1% with a direct investment of $268.19m, declining by 0.61% YoY.

Other major important investors were the United States, Singapore and Canada with a net FDI of $137.29m, $100.06m, and $95.52m respectively.

The Foreign Portfolio Investment (FPI), which represents an investment in the equity market (both direct and indirect) during FY24 stood at positive $175.68m.

The United Kingdom emerged as the biggest portfolio investor during the month, as it invested $18.27m.

In FY24, total foreign investment was reported at $1.52bn as compared to foreign investment of $600.75m incurred in the corresponding period last year.

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