FDI falls by 50% MoM in January

February 17, 2022 (MLN): Pakistan’s foreign direct investment (FDI) dropped by 50% MoM to $110 million in January 2022, the central bank data showed on Thursday.

On year on year, FDI fell by 35% when compared to $168.3mn in January 2021.

Meanwhile, the country fetched FDI amounting to $1.17 billion during July-Jan of FY22 as against $1.05bn recorded in the corresponding period of the previous fiscal year (FY21), showing a decline of 11.32%.

During the month of January 2022, the foreign private investment into the country amounted to $109.6mn, out of which, $110mn was attributed to direct investments, whereas disinvestment of $0.4mn was attributed to equity securities i.e., a part of portfolio investments.

Within the Direct Investments, there was an inflow of $181.6mn and an outflow of $71.6mn during the month.

The sequential decline in the FDI inflows was attributed to the significantly decreased investments from China as net investment inflows from China dropped by 68% MoM to $53.7mn from $167.4mn reported in December 2021. While investment from the United States increased by 6% MoM to stand at $19.7mn. FDI from Malaysia observed a marginal drop of 1% to $19.5mn.

Sector-wise, the power sector attracted the highest net FDI of $43mn during the month of January 2022, followed by communication with $28.4mn and financial business with $24.9mn.

Under the foreign public investment, $1.06bn worth of investment was witnessed in debt securities during January 2022 against the outflow of $19.3mn in December 2021. While in the same month of the last fiscal year, debt securities saw net inflows of $40.3mn.

All in all, the country witnessed foreign investments of $1.17bn during January 2022 when compared to net inflows of $155.7mn in December 2021 and $217.5mn in the same month the previous year.

Cumulatively, overall foreign investment in seven months of the ongoing fiscal year rose by 2.75x YoY to $1.82bn.

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