A 20 percent drop-down of Foreign direct investment (FDI) has been reported in the first two months (July-August) of the ongoing fiscal year showing no improvement except increased inflows from China.
According to the statistics recorded by the State Bank of Pakistan on Friday revealed that the country earned $203 million for the period of July-August 2021-22 compared to $255 million in the same period of last year The portfolio outflow in FY22 was about $14.7 million whereas it was $76.3 million in the two months of the preceding fiscal year, a drop-down of 80.7 percent.
Read more: Foreign direct investment falls by 32.5 percent in July-April FY21
Besides this, the FDI could not even touch $2.5 billion in the last three years as it was $947 million in FY19, while $2.315 billion in FY20 and FY21 had just $2.056 billion, demonstrating a meager investment climate.
Meanwhile, $53.9 million is the biggest inflow from China in the July-August period as compared to $40.8 million in the corresponding period of FY21. Hence China remains the only key investor in the last few years.
During the same period, the inflow recorded from the United States was $32.2 million compared to $15.4 million during the same period last year.
Moreover, the FDI from Singapore moved to $23.1 million from $4.7 million in 2MFY21.
The inflows recorded from UK and UAE were $18 million and $16.6 million, correspondingly, reflecting a little improvement over the same period last year.
Additionally, the accumulated outflow of FDI to Norway and the Netherlands were $11.6 million and $5.5 million, individually, compared to an inflow of $36.3 million and $21.2 million in 2MFY21.
Furthermore, the total private investment was raised by 5.5 percent to $188.3 million during 2MFY22 as compared to $178.5 million in the same period of last year.