Foreign Direct Investment Up by 12% in November 2023

The Foreign Direct Investment (FDI) in the country increased by 12 percent year-on-year (YoY) to $131 million in November 2023. According to data released by the State Bank of Pakistan (SBP), net foreign direct investment during 5MFY24 stood at $656 million, up 8 percent YoY compared to $607 million reported in 5MFY23. Portfolio investment registered inflows of $38.4 million in 5MFY24 compared to outflows of $14 million in 5MFY23. Foreign public investment reported inflows of $0.2 million in 5MFY24 compared to outflows of $17.4 million in 5MFY23. The total foreign investment stood at $694.8 million in 5MFY24 compared to $575.5 million in 5MFY23, an increase of 21 percent. In November 2023, the country attracted foreign direct investment of $131.4 million, up 12 percent over investment of $117 million in November 2022 and 8 percent higher compared to investment of $122 million in October 2023. In November, portfolio investment saw inflows of $27.5 million compared to $0.7 million last year. Foreign public investment in November 2023 registered outflows of $3 million compared to inflows of $0.4 million in November 2022. The total foreign investment in November 2023 stood at $156 million, up 32 percent YoY from $118.1 million last year. During the 5 months in review, China again emerged as the single largest investor by country, with $232.7 million poured into Pakistan. According to SBP data, Hong Kong came in second with $129.2 million, followed by the United Kingdom with $88.1 million. Sector-wise data reveals the power sector attracted $334 million, with $131 million going toward coal-based projects and $173 million in Hydel power. This was followed by the Oil & Gas Exploration sector, which invested $79 million, and the Financial Business sector, which invested $71 million.