FDI doubles to $222m
FDI doubles to $222m after net disposals in December 2022, foreign direct investment (FDI) more than doubled to US$222 million in January after recording US$110 million in inflows in the same month last year.
The latest data from the State Bank of Pakistan, released on Monday, showed that foreign direct investment improved mainly on inflows from China and Japan.
Due to persistent political and economic uncertainties, the FDI inflows plunged 44.2pc to $683.5m during the first seven months of this fiscal against $1.22bn in the same period of last year.
FDI doubles to $222m, in January is encouraging as there was a net outflow of US$17 million in December 2022. However, inflows from China ($68.4 million) and Japan ($59.7 million) accounted for more than 57% of the total. Total foreign direct investment in January.
In the first seven months, investment inflows from China and Japan were US$200.2 million and US$134 million, respectively. Other significant revenues during this period came from Switzerland ($106 million) and the United Arab Emirates ($83 million). However, the largest net outflow of $231 million in 7MFY23 came from Australia.
Decreases by 44%. w 7MFY23
Experts see no hope for an increase in foreign direct investment as the country continues to struggle with political and economic instability. Meanwhile, a senior minister in the PMLN-led coalition government recently said Pakistan had already failed, sending a damaging message to the world.
In practice, Pakistan has not yet declared bankruptcy, which means that no foreign payments to banks or the country have been delayed.