Foreign investment inflows in Pakistan soared by 323 percent YoY in Q1

Foreign investment

Foreign investment inflows increased to nearly $1 billion in the first quarter of the fiscal year 2021-22, owing primarily to government Sukuk receipts. 

According to the State Bank of Pakistan (SBP), foreign investment totaled $1.3 billion in the three months from July to September, up from $311 million in the same time the previous year, representing a remarkable 323 percent year-on-year increase (YoY). 

Foreign portfolio investment increased to $979 million, compared to outflows of $37.4 million in the same time last year. 

Read more: Foreign investment falls 20 percent to $203 million in Jul-Aug

Foreign direct inflows (FDI) in the real sector, on the other hand, was $439 million in the first quarter of 2021-22, down more than 4% from the same time the previous year. 

Foreign investment soars to 11-month high in Sept

Due to international investors’ concerns about the country’s economic volatility, particularly in light of the bad condition of businesses following the outbreak of COVID-19, real estate investment has remained low.

The situation is expected to improve in the next months as a result of the COVID-19 immunization campaign, which has decreased the viral positivity rate. 

With a $74 million investment in the first quarter of FY 2021-22, China has become the country’s major investor. The United States and the Netherlands each contributed $72 million and $60 million, respectively. 

With a total investment of $131 million, the electricity industry is the most well-funded. Financial enterprises come in second with $100 million, followed by the communication sector with $88 million. 

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