Pakistan's power sector attracts highest net FDI of $220m in Sep

October 22, 2024 (MLN): Pakistan’s Power Sector witnessed the highest net Foreign Direct Investment (FDI) worth $220.31 million in September 2024, as per the latest data released by the State Bank of Pakistan (SBP).

The second and third highest rank was held by the Financial Business and Oil & Gas Explorations sectors as they experienced a net inflow of $52.56m and $48.82m 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 $21.29m.

In the ongoing fiscal period (3MFY25), the Power sector has ranked first in terms of highest net FDI of $416.29m, compared to an inflow of $182.42m recorded in 3MFY24.

This was followed by the Financial Business sector which attracted a net FDI of $126.68m during the review period as against $149.85m in the previous fiscal year.

The third-highest net FDI receiver was Oil & Gas Explorations sector with cumulative net inflows of $96.99m, showing a rise of 23.3% YoY as the sector observed $78.66m net foreign inflows in SPLY.

Analyzing further, the sector that experienced the highest divestment was Mining & Quarrying sector, as the FDI balance for this sector stood at negative $45.99m in 3MFY25, compared to negative $17.87m in 3MFY24.

The Transport Equipment(Automobiles) sector was the second sector in line to record divestment through FDI of $10.14m, against an an outflow of $17.73m incurred in the SPLY.

Furthermore, the Transport sector also faced a divestment of $5.3m in 3MFY25, significantly down as in 3MFY24, the withdrawal stood at $6.83m.

It is crucial to mention that in September, FDI in the country clocked in at $385.09m.

On a cumulative basis, within 3MFY25, FDI has increased to $771.11m as compared to Foreign investment of $520.24m reported in the corresponding period last year.

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