Declining FDI

Published: April 19, 2018

KARACHI: As per the recent figures released by the State Bank of Pakistan, foreign direct investment (FDI) has dropped by 47 per cent at the end of the fiscal year 2017-18 as compared to the fiscal year 2016-17. The report cites political uncertainty in the country as the prime reason for the decline in FDI. Excluding the heavy Chinese investment, investments from other potential partners and countries are disappointing and alarming, particularly when put against Pakistan’s rapidly declining trade deficits and reserves.

Where one reason for the uncertain political situation is the upcoming general elections, lack of investment incentives and pro-investment policies have equally contributed to the same.

Talha Sheikh

Published in The Express Tribune, April 19th, 2018.

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