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HomeEconomyPakistan attracts $57.5 million FDI from Norway in May’20

Pakistan attracts $57.5 million FDI from Norway in May’20

June 19, 2020 (MLN): Pakistan witnessed a total foreign investment of $9.4 million in the month of May’20 after observing disinvestment for the past two months consecutively.

This increase in foreign investment is mainly attributable to gradual lift of the lockdown and recovery of global economies, resulting in opening up investment avenues.

According to the data released by State Bank of Pakistan (SBP), Norway, Malta, Netherland, Switzerland, and the UK came as 5 top investors in Pakistan in May’20.  Unfortunately, China, UAE divested during the said period.

Norway has been the top investor as its net direct investment into Pakistan amounted to $57.5 million in the month of May, whereas decent investment came from Malta with $18.5 million, followed by Netherland with $15.3 million, Switzerland with $13.6 million and the UK with $10.1 million.

The economies which took a big hit amid COVID-19 pandemic even showed some confidence and invested in Pakistan. Investors from Germany showed a small investment of $3.3 million during the month, followed by Italy with $2.5 million whereas the US brought a net direct investment of $2.2 million.

Shockingly, China showed the largest disinvestment of $22.2 million during the month, followed by UAE investors that pulled out $5.3 million from Pakistan during May’20.

Cumulatively, during Jul-May FY20, Pakistan witnessed a total foreign investment of $1.87 billion compared to the divestment of $132.6 million recorded in the corresponding period of last year.

During Jul-May FY20, Chinese investors invested a net of $855.3 million, which is 8.40 times higher than an investment of $101.7 million made by China in Pakistan soil, followed by Norway with the net amount of $346 million, showing a three-fold rise in investment in Pakistan when compared to Jul-May FY19.

On the other hand, Foreign Portfolio Investment (FPI), which represents an investment in the equity market painted a negative picture, as net FPI outflows during the month stood at $110.6 million in May 2020. The United States emerged as the biggest withdrawal of portfolio investment during the month, as it withdrew $22.5 million during May’20.

Copyright Mettis Link News

Posted on: 2020-06-19T20:19:00+05:00

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