Pak FDI Inflows Grew 12.4% in Nine Months

The net foreign direct investment to Pakistan has increased by 12.4% to $1.6 billion during the first nine months of the current fiscal year, owing to improved confidence of foreign investors, which resulted in significant fall in repatriation of funds during the period.

According to foreign investment data released by the State Bank of Pakistan on Monday, the total FDI was at $1.6 billion during July-March 2016-17 as against $1.425 billion during the corresponding period of the last fiscal year, APP reported.

The outflows against the FDI have declined sharply by 58% to $288.4 million during the period under review as against the outflows of $689.2 million in the last year. Analysts said the confidence building measures of the government had resulted in fall of outflows as foreign companies either reinvested their earnings or brought new investments into the country.

A recent survey of Overseas Investors Chamber of Commerce and Industry showed that business confidence of foreign investors remained positive. “OICCI members believe that there is a great opportunity for Pakistan to attract investment and realize its true economic potential,” according to the survey.

The inflows under the FDI also fell by 10.6% to $1.88 billion during the period as against $2.114 billion. Country-wise inflows have shown that China remained the major source for Pakistan, as the country received $594.8 million during the period. Other major FDI was received from Netherland as Dutch companies brought $465 million during the year.

Sector-wise FDI shows that food attracted $471 million, which followed by $389 million in power, $148 million in electric machinery, and $146 million in electronics etc. Total foreign private investment into Pakistan during July-March 2016/17 was $1.24 billion as against $1.075 billion, showing growth of 15.3%.