Norway overtakes China as top direct foreign investor in Pakistan

October 18, 2019 (MLN): With the revival of Foreign Direct Investment (FDI) in Pakistan, Norway appeared as the biggest investor during 1QFY20, as its net FDI inflows into the country stood at US$ 263.7 million, according to the latest data published by State Bank of Pakistan (SBP).

When compared with the same period last year, it divested US$ 24.5 million. This indicates that investors’ confidence was restored with the implementation of the International Monetary Fund (IMF) stabilization and reform program.

While, China which has been the top investors since few months due to its ongoing China-Pakistan Economic Corridor (CPEC) projects in Pakistan, has emerged as a second-leading country during Jul-Sept 2019 with FDI of $103 million, marking a decline of 69% YoY from $ 336.6 million in the same period last year.

The United Kingdom came at number three, its net FDI inflows into the country witnessed an increase of 18% YoY to $77.7 million as compared to US$ 66million in Jul-Sept 2018.

Next in line is Malaysia, as it brought net direct investments of $25 million compared with $7.5 million in the corresponding period last year.

With regards to other countries, FDI from the United States stood at $22.5 million, went up by 18% YoY from $19 million, while FDI from Japan, UAE, and Turkey recorded at $24 million, $16.9 million and $15.2 million respectively. Net inflows from Japan declined by 17%, whereas, investments from the UAE and Turkey grew by 18% and 40% YoY respectively during the period under review.

On the other hand, Foreign Portfolio Investment (FPI), which represents an investment in the equity market also painted a positive picture, as net FPI inflows stood at $22 million against the outflows of $ 185 million. The United States emerged as the biggest source of portfolio investment during July-Sept 2019, it recorded at $32.8 million against the outflows of $9.7 million.

Hong Kong emerged as the second-biggest source of foreign portfolio investment with FPI recorded at $13.8 million against outflows of $6.6 million in Jul-Sept 2018.

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