FDI from China to Pakistan jumps by six fold to $844 million in FY20

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MG News | July 20, 2020 at 01:46 PM GMT+05:00

July 20, 2020 (MLN): China has emerged as the top source of foreign direct investment into Pakistan, accounting for over six-fold to $844 million of FDI inflows in FY20.

According to the official data released by State Bank of Pakistan (SBP), China, Norway, Malta, Hong Kong, and Netherland came as 5 top investors in Pakistan in FY20.  

In the last financial year, Norway emerges as the second-largest investor in Pakistan, with foreign direct investment of $401.9 million, showing a three-fold rise in investment in Pakistan when compared to FY19, whereas it was $222.2 million from Malta, followed by Hong Kong with $190.7 million, Netherland with $133 million.

FDI inflows from the UK fell to $179 million in FY20 from $225 million in the previous year, depicting a decline of 20% YoY. Similarly, FDI inflows from the United States declined by 16% YoY, from $127.5 million a year ago to $106.9 million in FY20.

In the month of June, Norway has been the top investor as its net direct investment into Pakistan amounted to $55.9 million, followed by Hong Kong with $22.3 million whereas decent investment came from Malta with $18.5 million.

However, UAE showed the largest disinvestment of $7.8 million during the month.

Interestingly, Foreign Portfolio Investment (FPI), which represents an investment in the equity market painted a positive picture, as net FPI inflows stood at $4.8 million in June 2020.


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