Pakistan experiences uptick in FDI during April

Amount rises to $132m, up from $113m in the same month of 2016

KARACHI: Foreign Direct Investment (FDI) in Pakistan rose to $132 million in April, up by 17% from $113 million compared to the same month of the previous year.

According to data released by the State Bank of Pakistan (SBP), FDI increased by 13% to $1.73 billion in the first 10 months (Jul-Apr) of the ongoing fiscal year compared to $1.54 billion in the same period of the previous year.



Pakistan received $5.4 billion in the fiscal year 2007-08, which was the highest FDI in the country’s history, according to the Board of Investment.



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

China leads the list of individual countries pouring investment in Pakistan in the first 10 months (Jul-Apr) of the current fiscal year with $718 million, up by 13% compared with $636 million in the same period last year. In April alone, the country received an FDI of $124 million from China.

China is followed by the Netherlands with an FDI of $466 million in the first 10 months of the current fiscal year, compared to just $27 million in the same period of last year. This comes on back of a $448 million acquisition of Engro Foods by FrieslandCampina - a Dutch food company.

France came at number three with $171 million compared to $75 million in the same period of last year, while Turkey brought in investments of $134 million compared with just $17 million in the corresponding period.



The biggest jump in FDI was recorded in the food sector that attracted $475 million as opposed to outflows of $46 million in the corresponding period of previous year. The second highest jump was recorded in the power sector where the country received $423 million, down by a massive 37% compared to $676 million in the same period of last year.

Meanwhile, the construction sector received $356 million in the first 10 months of the ongoing fiscal year, up by a significant 641% from just $48 million in the same period last year. And the electronics sector also received $154 million compared to just $29 million in the period under review.

Published in The Express Tribune, May 16^th, 2017.

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