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Foreign direct investment falls by 32.5 percent in July-April FY21

Foreign direct investment

Foreign direct investment has fallen by 32 percent during the 10 months of the current fiscal year from July to April of 2021. 

Pakistan has been endeavoring for many years to attract foreign investment but the efforts done in this direction could not be fruitful. During the first 10 months of this fiscal year, the foreign investment decreased by 32% as compared to the same period last year.  

However, in April, the FDI was higher than the FDI during the same month last year. There has been $1.553 billion foreign direct investment from July 2020 to April 2021 as compared to $2.301 billion during this period in the fiscal year 2019-20 with a decrease of 32%.

Foreign private investment which includes portfolio investment was $1.273 billion. Here too is the decrease of 40% as compared to the same period last year.  

The outflow of the portfolio investment during this period in the current financial year was $280 million as compared to $182 million during the same period, last year.

Chinese direct investment tops with $708 million in 10 months

The inflow of China during the same period in the current year has been $708 million as compared to $865.3 million during the same period last year.  

Although, there seems a decline yet, the foreign direct investment from China is about 46 % of the total FDI, which was done in Pakistan during the first 10 months of the current fiscal year.

Hong Kong is the second country, the FDI of which has been the highest during the period, under discussion. Here too, the trend is downward. The foreign direct investment of Hong Kong in Pakistan during the period from July 2020 to April 2021 is $127.6 million which was $163.5 million during this period last year.

The FDI from the United Kingdom increased. During the period, under discussion, the FDI from the UK is $118.7 million which was $102.7 during the same period last year.  

In Pakistan Investment Bonds, the United Kingdom is the largest investor. The FDI from the United States of America was $96 million as compared to $89.4 million during the first 10 months of this financial year. Here is the little increase. 

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