Foreign Direct Investment Declines by 47% in 1QFY23

Amid political turmoil and certainty, the inflows of foreign direct investment (FID) continued to portray a dismal situation in the country, dropping by 47 percent in the first quarter of the current year 2022-23 as compared to the same period of the last fiscal year. According to data released by the State Bank of Pakistan (SBP), the country received a direct investment of $253.4 million in the first quarter of FY23 against $479.2 million in the same period of last fiscal year (FY22), showing a decline of $226 million. UAE has the largest share with an investment of $60 million in total FDI. It is followed by China with $57 million in the period under review. Switzerland ranked third with an investment of $35 million. In September 2022 alone, FDI decreased by 66 percent to $84 million compared to $250 million in September 2021. Foreign portfolio investment also witnessed a downward trend in the period. Portfolio investment recorded an outflow of $12.1 million in the first quarter of this fiscal year, compared to an outflow of $100.5 million in the corresponding period of the last fiscal year. The net foreign investment in Pakistan, comprising foreign direct investment, portfolio investment, and foreign public investment fell by 84 percent or $1.135 billion in the first quarter of the current fiscal year. The country’s total foreign investment stood at $223.1 million in the first quarter of FY23 compared to $1.358 billion in the same period of FY22.