During the first four months of current fiscal year, foreign Direct Investment (FDI) decreased by 12 percent which stood at $662 million as compared to $750 million during these months last year, revealed by the Central Bank of Pakistan.
At the time when the government is busy in negotiation with International Monetary Fund, this big fall seems highly disappointing. The FDIs from China decreased badly to $116.5 million in the four months of this financial year as compared to $399.5 during this period, last year.
This neighboring country has been the biggest business partner of Pakistan and is one of the most important sources for reviving the economy of the country with special reference to exports.
Read more: Foreign direct investment falls by 32.5 percent in July-April FY21
The fall of Chinese Foreign Direct Investment could be the result of low inflow for the power sector owing to surplus energy in Pakistan. Netherlands is the country from which, Pakistan received biggest inflow during the period from July to October, this year.
The amount of inflow from Netherlands stands at $160.5 million as compared to just $11.5 million last year, during the period under consideration. This is remarkably high inflow. The inflow from United States of America also moved up to $114.3 million which was only $27.7 million during the first four months, last year.
The inflows from United Kingdom too increased which came to $57 million. The amount of inflows from United Arab Emirates also moved up which stood at $59.6 million. The power sector witnessed the significant fall as the number of inflows here came to $173 million as compared $467.2 million during the first four months, last year.
The highest inflow has been for coal which could catch only a humble amount of $78 million which was $348.2 million during the period from July to October, last year. The Foreign Direct Investment in financial sector has increased to $114.2 million during the four months as compared to $106 million during these months, last year.
In communication sector, the inflow is $93.8 million as compared $5.1 million during the period, last year. The IT sector got the inflows, worth $70.7 million which was only $14.7 million, last year.