January 17, 2024 (MLN): Pakistan’s Power Sector received the highest net FDI worth $433.5 million in 1HFY24, followed by the Oil & Gas Exploration sector and Financial Businesses with net FDI of $129.79m and $91.05m, respectively.
Similarly, in the month of December alone, the Power sector emerged as a major recipient of foreign inflows, as it fetched a net $94.8m, followed by the Oil & Gas Exploration and financial business sector with a net FDI of $48.85m and $24.9mn, respectively.
According to the cumulative data released by the State Bank of Pakistan (SBP) on total Foreign Investment received by sectors, Hydel Power projects under the Power Segment attracted the most investors’ attention as it received the highest net inflows of $244.34m during 1HFY24 compared to the net inflows of $188.35m in 1HFY23, up by 29.73% YoY.
This was followed by Coal Power Projects which attracted a net FDI of $167.84m during the review period as against $208.14m in the previous fiscal year, marking a decrease of 19.36% YoY.
The detailed analysis revealed that the second sector with higher net flows in Pakistan was the Oil & Gas Exploration sector. During 1HFY24, the sector fetched 83.92% higher investment when compared with the net investment of $70.57m in 1HFY23.
The third-highest net FDI receiver is the Financial Business sector with cumulative net inflows of $91.05m, showing a decline of 28.46% YoY as the sector observed $127.28m net foreign inflows in SPLY.
The next in line apart from the others section is the petroleum refining sector which fetched a net of $44.34m.
Furthermore, the Pharmaceuticals & OTC Products sector received net inflows of $32.76m against $1.6m reported in 1HFY23.
Other sectors such as Tobacco & Cigarettes, Trade, and beverages also managed to fetch decent investments worth $24.54m, $22.74m, and $16.52m respectively during 1HFY24.
On the other hand, sectors that saw notable foreign disinvestment during the period include Communication (-$80.6m), Electronics (-$5.2m), and Mining & Quarrying (-$2m).
It is crucial to mention that in 1HFY24, FDI has spiked to $862.6m as compared to foreign investment of $640.8m reported in the corresponding period last year.
Copyright Mettis Link News
Posted on: 2024-01-17T16:34:10+05:00
