August 18, 2023 (MLN): Foreign direct investment (FDI) in Pakistan stood at $1.46 billion in FY23, registering a decline of 24.80% YoY compared to $1.94bn in FY22, the latest data issued by the State Bank of Pakistan (SBP) showed.
Within the direct investments in FY23, there was an inflow of $2.31bn, down by 20.84% YoY, while the outflow stood at $675.6 million, down by over 10.71% YoY.
The foreign private investment into the country fell by 7.15% YoY to clock in at $1.44bn in FY23.
The decline in foreign investment can be attributed to several issues, including terrorism, energy shortages, financial crises, and most significantly to political uncertainty.
Caretaker Prime Minister Anwaar-ul-Haq Kakar on Thursday emphasized the need to prioritize necessary actions aimed at increasing foreign investment by the government.
He highlighted the Special Investment Facilitation Council (SIFC) as the focal point for the country's economic development.
He further ensured that under the SIFC, the government would focus on developing various sectors, considering the country’s vast potential in fields such as agriculture, mining and minerals, information technology, energy, and defense production to attract foreign investment.
“Caretaker government during its short tenure would fully devote all its energies to the stability and progress of the economy,” Anwaar-ul-Haq stated while addressing the work of SIFC.
He directed the harmonization of the regulatory structure with contemporary international requirements to enhance the energy sector.
Meanwhile, the foreign public investment clocked in at a negative $1.01bn during FY23, compared to $309.45 million in FY22.
Accordingly, the total foreign investment in the review fiscal year went down by 76.87% YoY to clock in at $429.7m, compared to $1.86bn in FY22.
