Pakistan's Power sector attracts highest net FDI of $148m in Aug

September 19, 2024 (MLN): Pakistan’s Power Sector witnessed the highest net Foreign Direct Investment (FDI) worth $148.02 million in August 2024, as per the latest data released by the State Bank of Pakistan (SBP).

The second and third highest rank was held by the Electronics and Financial Business sectors as they experienced a net inflow of $21.64m and $19.02m respectively from foreign investors in the review month.

On the other hand, the sector that witnessed the biggest net outflow was the Mining & Quarrying sector as foreign investors withdrew an amount of $22.59m.

In the ongoing fiscal period (2MFY25), the Power sector ranked first in terms of highest net FDI of $210.18m, compared to an inflow of $107.93m recorded in FY23.

This was followed by the Oil & Gas Explorations sector which attracted a net FDI of $44.2m during the review period as against $32.96m in the previous fiscal year.

The third-highest net FDI receiver was the Financial Business sector with cumulative net inflows of $39.43m, showing a rise of 48.24% YoY as the sector observed $26.6m net foreign inflows in SPLY.

Analyzing further, the sector that experienced the highest divestment was the Mining & Quarrying sector, as the FDI balance for this sector stood at negative $24.67m in 2MFY25, compared to negative $7.18m in 2MFY24.

The Transport Equipment(Automobiles) sector was the second sector in line to record divestment through FDI of $19.08m, against an an outflow of $36.22m incurred in the SPLY.

Furthermore, the Transport sector also faced a divestment of $3.36m in FY24, significantly down as in FY23, the FDI stood at $1.03m.

It is crucial to mention that in August, FDI in the country clocked in at $213.96m.

On a cumulative basis, within 2MFY25, FDI has increased to $350.26m as compared to Foreign investment of $225.2m reported in the corresponding period last year.

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