China remains the largest FDI source in Pakistan

April 20, 2021 (MLN): Signifying the strong bilateral trading and investment relations that have been growing over the years, China has retained the top position as a foreign direct investor in Pakistan during March 2021, with a net direct investment of $126 million, followed by the U.A.E and the United Kingdom that invested $13.1 million and $9.8 million, respectively.

Figures compiled by the State Bank of Pakistan (SBP) revealed that cumulatively, July-March FY21, China, Hongkong and United Kingdom appeared as the top three investors in Pakistan, with a net FDI of $650.8 million, $105.7 million and $105 million, respectively.

The net FDI from China was 24.3% lower in 9MFY21, compared to the net inflows of $859.3 million in the same period of FY20. While the net inflows from Malta witnessed around a 23% decline when compared to the investment of $135.1 million recorded during July- March FY20.

On the other hand, investors from the UK showed confidence in Pakistan’s economy as it net FDI surged by 16% during 9MFY21 compared to the investment of $90.4 million observed in the corresponding period of last year.

Other important investors were the United States, the U.A.E and Switzerland with a net FDI of $88.1 million, $73.4 million and $69.7 million, respectively during July-March FY21. The net inflows from the US jumped by 36% compared to July-March FY20. Likewise, the net inflows from Switzerland depict a 60% increase compared to the same period last year while the net FDI from UAE recorded an investment of $73.4 million during the said period against the disinvestment of $22.7 million reported in 9MFY20.

Moreover, Foreign Portfolio Investment (FPI), which represents an investment in the equity market shown a negative picture, as net FPI outflows during the period under review stood at $268.7 million compared to the inflows of $227.5 million recorded in the same period last year. The UK emerged as the biggest withdrawal of portfolio investment during the period, as it withdrew $183.5 million during 9MFY21, followed by the US with $131 million.

Meanwhile, UAE appeared as the largest contributor in portfolio investment with $147.9 million during 9MFY21.


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Posted on: 2021-04-20T12:51:00+05:00