Pakistan’s Power Sector fetches 6 times higher FDI during 4MFY21

November 16, 2020 (MLN): Pakistan’s Power Sector has received the highest net FDI worth $239 million in October’20. During 4MFY21, it fetched a net $352.3 million, showing 6.69x increase when compared to the net inflows of $52.6 million in the corresponding period of FY20.

According to the latest data released by the State Bank of Pakistan (SBP) on total Foreign Investment received by sectors, Coal Power projects under Power Segment attracted the most of investors’ attention as it received the highest net inflows of $270.9 million during 4MFY21 compared to the net outflows of $22.7 million in Jul-Oct FY20.

The detailed analysis revealed that the second sector with higher net flows in Pakistan is Financial Business. During Jul-Oct FY21, the sector fetched net $118.5 million, which was 164% higher when compared with the net investment of $44.9 million net in the same period of FY20.

The third-highest net FDI receiver is Oil & Gas Exploration sector with net inflows of $83.1 million during the period under review, showing a jump of 11% as the sector observed $75.1 million net foreign inflows in Jul-Oct FY20.

The next in line is the Communication sector which comprises of telecommunication, information technology and postal & courier services, etc. During the review period, the sector fetched net $54.4 million, compared with the net investment of $330 million net in 4MFY20, showing a significant decline of 84% YoY. Telecommunication sector under the Communication head received the highest net $39 million worth of FDI during the period under study, compared to the net inflows of $320 million in the same period last year.

Other sectors such as Electrical Machinery, Automobile and Cement also managed to fetch decent investments worth $36.5 million, $16.2 million, and $12.9 million respectively during Jul-Oct FY21.

On the other hand, the sectors which saw foreign disinvestment during the period include; Petroleum Refining and Food Packaging.

Copyright Mettis Link News

Posted on: 2020-11-16T15:07:00+05:00

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