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Power sector remains the major recipient of foreign inflows during 5MFY21

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December 17, 2020 (MLN): Pakistan’s Power Sector witnessed the highest outflow of Foreign Direct Investment (FDI) worth $83.2 million during the month of November 2020, followed by Communication sector with net negative FDI of $27.6 million.

Cumulatively, during 5MFY21, Power sector remained the major recipient of the foreign inflows, as it fetched a net $269.2 million, showing 4x increase when compared to the net inflows of $66.6 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 $175.8 million during 5MFY21 compared to the net outflows of $23.5 million in Jul-Nov FY20.

The detailed analysis revealed that the second sector with higher net flows in Pakistan is Financial Business. During Jul-Nov FY21, the sector fetched net $134.5 million, which was 2% lower when compared with the net investment of $136.8 million net in the same period of FY20.

The third-highest net FDI receiver is Oil & Gas Exploration sector with net inflows of $99.6 million during the period under review, showing a jump of 4% YoY as the sector observed $96.2 million net foreign inflows in Jul-Nov FY20.

The next in line is the Electrical Machinery sector which fetched net $55.5 million, compared with the net investment of $83.6 million net in 5MFY20, showing a decline of 34% YoY.

Communication sector which comprises of telecommunication, information technology and postal & courier services, etc. received net foreign investment of $30.7 million during the period under review, compared with the net investment of $343.8 million net in 5MFY20, showing a significant decline of 91% YoY. Information Technology under the Communication head received the highest net $19.3 million worth of FDI during the period under study, compared to the net inflows of $10.7 million in the same period last year.

Other sectors such as Construction, Automobile and Cement also managed to fetch decent investments worth $25.8 million, $17.2 million, and $16.1 million respectively during Jul-Nov FY21.

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

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Posted on: 2020-12-17T13:42:00+05:00

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