Pakistan experienced substantial foreign direct investment (FDI) from various countries in the initial four months of FY 2023-24. Notably, China emerged as a significant contributor, accounting for a substantial portion of the total FDI received by Pakistan during this period.
In October alone, Pakistan welcomed a net FDI of $31.7 million from China, marking a total inflow of $33 million. Despite a minor outflow of $1.3 million, China’s contribution remained noteworthy, constituting a substantial portion of Pakistan’s FDI.
The statistics released by the State Bank of Pakistan (SBP) revealed that in October 2023, the overall FDI from multiple nations totaled $126.8 million, with China leading the way as the principal investor.
Aside from China, the United Kingdom and the United States also contributed significantly, with investments of $16.8 million and $15.8 million, respectively. Throughout the July-October period of FY 2023-24, Pakistan attracted a total FDI of $538.8 million from various global partners.
Breaking down the October 2023 FDI figures, the power sector was a major beneficiary, attracting $48.2 million. Specifically, investments were allocated to diverse sub-sectors, including $28 million in coal, $17.2 million in hydel, and $3 million in thermal power.
The electronic sector received $13.5 million, while industries and financial businesses secured $12 million and $8.5 million, respectively. Additionally, petroleum refining drew $7.4 million in investments.
Other sectors also saw contributions: the trade sector received $5.9 million, personal services acquired $5.2 million, and pharmaceuticals and the OCT sectors attracted $3.7 million. Information technology garnered $3.6 million, cement received $2.6 million, transport secured $1.8 million, and tourism attracted $1.6 million. Moreover, various sectors collectively received $18.1 million in investments.
The consistent influx of FDI across diverse sectors signifies a positive trend in Pakistan’s investment landscape, showcasing investor confidence and interest in the country’s economic growth.
