Pakistan Economy
Pakistan's foreign direct investment falls 12pc in July-Oct: Reports
Karachi, Pakistan/IBNS: Pakistan's foreign direct investment (FDI) fell by 12 percent in the first four months (July to October) of the current fiscal year, Dawn News reported quoting a data shared by the country's State Bank on Wednesday.
According to the Pak media outlet, In real terms, FDI inflows stood at $662 million during the four-month period compared to $750.6 million a year ago.
In October, the FDI inflows plunged by 24 percent to $223 million from $293 million in the same month last year, reports The Dawn.
The Dawn reported Pakistan has been unable to attract significant FDI inflows for more than five years now.
The drop in FDI would be disappointing for the Imran Khan government at a time when it badly needs foreign inflows and is in negotiations with the International Monetary Fund (IMF) for the resumption of loans, according to the Dawn.
The newspaper reported the biggest concern could be the inflow from China which fell drastically to $116.5 million in July-October from $399.5 million in the same period in 2020.
China, being the largest trade partner of Pakistan, is becoming more important in order to boost the country's exports, and the declining Chinese FDI could be the outcome of low inflows for the power sector owing to surplus energy in the south Asian country, the Dawn reported.
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