FDI in Pakistan surges by 61% MoM to $219mn in December

January 18, 2022 (MLN): Foreign direct investment (FDI) in Pakistan stood at $218.7 million during December’21, went up by 61% MoM against the net inflow of $135.7mn recorded in Nov’21, data issued by State Bank of Pakistan (SBP) showed today.

On a yearly basis, net FDI rose by 29% from $169.4mn in December 2020.

According to the data compiled by SBP, FDI increased by 20% YoY to $1.05bn during 1HFY22, i.e., July to December, as compared to FDI of $879.7mn reported in the corresponding period last year.

Country-wise, China emerged as the largest investor with a net FDI of $306.7mn during July-Dec 2021 followed by United States and Netherland with $149.3mn and $124.5mn respectively.

Sector-wise, power sector attracted highest net FDI of $363.7mn (34.4% of total FDI) during 6MFY22, followed by financial business $205.7mn (19%), communication $146.5mn (14%), and oil & gas exploration $146mn (14%).

During the month of December, the foreign private investment into the country amounted to $175mn, out of which, $218.7mn was attributed to direct investments, whereas disinvestment of $43.7mn was attributed to equity securities i.e., a part of portfolio investments.

Within the Direct Investments, there was an inflow of $355mn and an outflow of $136.5mn during the month. 

Under the foreign public investment, $19.3mn worth of disinvestment was witnessed in debt securities during December’21 against the inflow of $67.7mn in Dec’20. While in the previous month, debt securities witnessed outflow of $18.8nn.

All in all, the country witnessed foreign investments of $155.7mn in Pakistan during December when compared to net inflows of $178.2mn in Dec’20 and $31.9mn in the previous month.

Cumulatively, overall foreign investment in six months of the current fiscal year rose by 47% to $651mn. Meanwhile, the stock and debt market in six months of FY22 saw an outflow of $307mn and $98mn respectively.

Copyright Mettis Link News