China leads the pack as FDI increases 39%

Amounts to $297m in March, total for 9MFY17 stands at $1.6 billion

KARACHI: Foreign direct investment (FDI) in Pakistan increased to $297 million in March, up 39% from $213 million compared to the same month of the previous year.

Cumulatively, FDI increased 12% to $1.6 billion in the first nine months (Jul-Mar) of the ongoing fiscal year 2016-17, compared with $1.43 billion in the same period of the previous year, according to data released by the State Bank of Pakistan (SBP) on Monday.

Foreign direct investment amounts to $1.16b in 7MFY17, up 10%

Pakistan has been recording low levels of foreign investment since 2008. Many foreign investors especially from western countries have pulled out due to the persistent energy crisis, poor governance and security challenges.

Pakistan received $5.4 billion in fiscal year 2008, which was the highest FDI in the country’s history, according to the Board of Investment (BoI).

At a time when western investors are withdrawing their investments from Pakistan, Chinese investors are pouring cash mainly due to the China-Pakistan Economic Corridor (CPEC) projects.

FDI in Pakistan down massive 45% in Jul-Nov

China leads the list of individual countries pouring investment in Pakistan in the first nine months (Jul-Mar) of 2016-17 with $595 million compared to $591 million in the same period last year. In March 2017, Pakistan received an FDI of $263 million from China.

Following China is Netherlands with an FDI of $466 million in Jul-Mar of fiscal year 2016-17 compared with just $25.3 million in the same period of last year. This comes on back of the $448 million Engro Foods’ acquisition that FrieslandCampina - a Dutch food company - completed during the ongoing fiscal year.



France came at number three with $162 million compared with $68 million in the same period of last year.

Turkey brought in investments of $133 million compared with just $16 million in the corresponding period of last year.

The biggest jump in FDI was recorded in the food sector that attracted $471 million in as opposed to the outflow of $43 million in the corresponding period of previous year.

Foreign direct investment: FDI shrinks 48% in Jul-Oct

The second highest jump was recorded in the power sector where the country received $389 million, down by a massive 58% compared with $614 million in the same period of last year. However, the power sector received $108 million only in March 2017.

The construction sector received $264 million in the first nine months of fiscal year 2016-17, up by a significant 654% from just $35 million in the same period last year. The sector attracted $101 million alone in the month of March 2017.

Electronics sector also received $148 million compared to just $34 million in the period under review. The sector remained in the limelight in 2016 because of Turkish investment in a major electronics company in Pakistan.