State Bank of Pakistan released the Data for Foreign Direct Investment in Pakistan for the month of April. Foreign Direct Investment rose in the month of April; the investment is up by 17% from $113 million to reach $132 million in comparison to the FDI number for same period last year.
The numbers reveal that FDI for the first ten months is up by 13% to reach $1.73 billion while the amount for same time during last year was $1.54 billion.
Pakistan reached a historical high of FDI in the year 2007-08, $5.4 billion; however the country has since then recorded the lowest level of FDI owing to the turbulent conditions at home and Great Recession in the international markets. The increasing investment has been due to the Chinese involvement in various projects across Pakistan. The projects mainly fall under China Pakistan Economic Corridor.
China leads the list of foreign investors in the SBP numbers, with total investment of $718 million. During this month of April, China alone has contributed an FDI of $124 million. Following China is Netherlands, which has FDI of $466 million up from $27 million last year. This has been due to the acquisition of Engro Foods by a Dutch company, FrieslandCampnia. Next on the list after China and Netherlands is France who has invested around $171 million compared to the lowly number $75 million last year.
The sectors which had most investments from foreign investors were food, power generation and construction. Food sector received inflows worth $475 million compared to $46 million outflows in the previous years. Power sector investments declined on year-to-year basis reaching $ 423million compared to previous year’s numbers of $676 million.
Furthermore, construction sector saw a 461% increase in inflows, the numbers for the current fiscal year with respect to construction sector were a total of $ 356 million compared to previous year’s $ 48million.