Pakistan’s Power Sector grabs most of foreign investors’ heed in FY20

July 20, 2020 (MLN): The Power sector has recorded the highest Net FDI of $764.3 million during FY20 compared to the net foreign direct disinvestment of $323.9 million in FY19.

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 $545 million during FY20 compared to the net outflows of $453.2 million in FY19.

The detailed analysis revealed that the second sector with higher net flows in Pakistan is Communication sector which comprises of telecommunication, information technology and postal & courier services, etc. During FY20, the sector fetched net $663.9 million, compared with the disinvestment of $55.7 million net in FY19. Telecommunication sector under the Communication head received the highest net $622.5 million worth of FDI during the outgoing fiscal year, compared to the net outflow of $77.6 million in FY19.

The third-highest net FDI receiver is Oil & Gas Exploration sector with net inflows of $311.4 million in FY20, showing a decline of 11% as the sector observed $349.8 million net foreign inflows in FY19.

The next in line is the Financial Businesses, which recorded net inflows of $273.8 million during the fiscal year under review. Compared to the FY19, the sector’s inflows declined slightly by 4% YoY.

Other sectors such as Electrical Machinery, Automobile, Cement and Textile also managed to fetch decent investments worth $153.4 million, $50.1 million, $38.7 million and $37.7 million respectively during FY20.

On the other hand, the sectors which saw foreign disinvestment in FY20 include; Transport, Petroleum Refining and Personal services.

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