Total foreign direct investment (FDI) into Pakistan rose 6.1% to $1.26 billion during the July–February 2021-22 compared to $1.19 billion in the corresponding period of the last fiscal year. However, the FDI has decreased by 33 percent on yearly basis and declined by 17.3 percent as compared to the previous month of January, as per the data released by the State Bank of Pakistan.
The SBP data showed that during July-Feb 2021-22 (8MFY22) FDI inflows recorded a positive growth of 6 percent when compared to the same period of last fiscal year. While the second half of the present fiscal has been facing numerous negative impacts such as the war in Ukraine and an increase in oil prices in the international markets.
Due to a poor investment climate, the FDI inflows recorded a sharp decline of 50 percent to $110 million in January this year from $218.7 million in December 2021.
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However, a major change was noted in January since the first half of the current fiscal year (1HFY22) experienced growth of 20 percent in foreign direct investment. The inflow in December 2021 was very much higher at $218.7 million, recording a jump of 29 percent when compared to $169.4 million in December 2020.
The falling trend of the previous two months could eradicate the positive growth trend of 20 percent growth during 1HFY22.
The SBP data further showed that FDI inflow in February this year was $90.8 million compared to $137 million during the same month in FY21, showing a decline of 33.6 percent.
Throughout 8MFY22, the country earned a total of $1.257 billion compared to $1.185 billion in the same period of FY21; an increase of 6.1 percent.
Portfolio investment showed that during July-Feb FY22 the outflow was greater at $314 million compared to an outflow of $253 million in 8MFY21.
It is to be mentioned that China is the biggest investor in the country and it still retained its first position in the list of the countries investing in Pakistan.
Whereas other imperative investors are Switzerland $80.4 million, the United Arab Emirates with $78 million, and Singapore with $79 million.