Pakistan’s FDI rise 20% in first half

KARACHI: The net inflows of foreign direct investment (FDI) into Pakistan has increased 20 per cent during the first half (July-December) 2021/22 due to a significant decline in outflows.

The FDI increased to $1.05 billion during the first half of the current fiscal year, compared with $879.7 million in the corresponding half of the last fiscal year, the State Bank of Pakistan (SBP) reported.

The inflows recorded a decline of 7.2 per cent to $1.45 billion during the half year under review, compared with $1.56 billion in the same half of the fiscal year 2020/21.

The outflows against the FDI fell 42 per cent to $397 million during the first half of the current fiscal year, compared with $686 million in the corresponding half of the last fiscal year.

The country received $1.86 billion in FDI during the fiscal year 2020/21, which fell from $2.59 billion received in the preceding fiscal year.

The outflows from the capital market continued but contracted during the first half of the current fiscal year. The outflows of portfolio investment fell 25.7 per cent to $307 million, compared with the outflows of $244 million in the corresponding period of the last fiscal year.

The total private foreign investment recorded a growth of 18 per cent to $749 million during July-December 2021/22, compared with $635 million in the corresponding half of the last fiscal year.