FDI in Pakistan drops by 39% MoM in November

December 17, 2021 (MLN): Foreign direct investment (FDI) in Pakistan stood at $135.6 million during November ’21, down by 39% MoM against the net inflow of $223mn recorded in Oct’21, data issued by State Bank of Pakistan (SBP) showed today.

However, in the same month last year, the country witnessed disinvestment of $40.3mn.

According to the data compiled by SBP, FDI increased by 12% YoY to $798mn during 5MFY22, i.e., July to November, as compared to FDI of $710mn reported in the corresponding period last year.

Country-wise, Netherland emerged as the largest investor with a net FDI of $153mn during July-Nov 2021 followed by China and United States with $149mn and $130mn respectively.

Sector-wise, power sector attracted highest net FDI of $229.2mn (29.2% of total FDI) during 5MFY22, followed by financial business $155.7mn (20%), oil & gas exploration $110.7mn (14%), and communication $100.8mn (13%).

During the month of November, the foreign private investment into the country amounted to $50.6mn, out of which, $135.6mn was attributed to direct investments, whereas disinvestment of $84.9mn was attributed to equity securities i.e., a part of portfolio investments.

Within the Direct Investments, there was an inflow of $220mn and an outflow of $84.4mn during the month. 

Under the foreign public investment, $18.8n worth of disinvestment was witnessed in debt securities during November’21 against the outflow of $19.6mn in Nov’20. While in the previous month, debt securities witnessed outflows of $1bn recorded in Oct’21.

All in all, the country witnessed foreign disinvestments of $31.8mn in Pakistan during November when compared to net inflows of $60.6mn in Nov’20 and $894.9mn in the previous month.

Cumulatively, overall foreign investment in five months rose by 73% to $455.5mn. Meanwhile, the stock market in five months of FY22 saw an outflow of $263mn.

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