February 21, 2019 (MLN): As the current government is continuously making an effort to increase foreign investment in Pakistan, these efforts don’t reflect in the current figures of net inflows of Foreign Direct Investment (FDI) released by SBP .The uncertainties in the macroeconomic and political environment in Pakistan kept foreign investors reluctant to make long term investments in Pakistan.
According to the data, Net Foreign Direct Investment (FDI) in the month of January 2019 declined by 58.6% compared to previous month.
As net FDI increased by 2.53% to US$ 132.3 million in the month of January 2019, showing Pakistan’s potential to attract investment has increased as compared to same period last year.
During July to January FY19 it stood at US$ 1.45 billion, depicting a decline of 17.58% as compared to same period corresponding year.
Net investment from China declined by 28% during Jul-Jan FY19 against same period last year, however China continued to remain the single largest investor on the FDI front under its ongoing China-Pakistan Economic Corridor (CPEC) projects in Pakistan, as it alone invested $825.5 million during the period that comes to about 56.87% of the total net FDI worth $1451.4 million.
Meanwhile, UK appeared as the second largest investor with net FDI of $127.4 million, while South Korea has also emerged as a third notable investor, as it invested net amount of $68.3 million against US$3.1 million last year followed by Japan and the UAE with net investments of $66.6 million and $59.4 million, respectively.
Net Investment from Turkey also witnessed an increase to $42.3 million from $10.9 million in Jul-Jan FY18.
On the other hand, net investment from US, Switzerland and Netherlands during the period declined by 32%, 70% and 6% respectively compared to same period last year.
Cumulatively in the first seven months (July-Jan) of the current fiscal year, Australia, Norway, Malta and Kuwait divested $12.9 million, $3.9 million, $81.6 million and $6.8 million respectively.
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