ISLAMABAD: In October 2023, China became the top investor in Pakistan, injecting $31.74 million in direct investment, as per the data of the State Bank of Pakistan. Following closely were the United Kingdom and Singapore, investing $19.5 million and $19.4 million, respectively.
Throughout July to October in the fiscal year 2024, China maintained its lead in investments, trailed by Hong Kong and the United Kingdom, with net FDI figures of $158 million, $106.5 million, and $64.18 million, respectively.
The total FDI during the first four months of fiscal year 2024 hit $524.72 million, marking a 7.11% increase, or $34.82 million more than the $489.9 million recorded in the same period of the previous fiscal year, according to Mettis Global.
Despite China’s dominant 30% share of direct investments during these four months, there was a significant 16.88% decrease compared to its figure of $190.14 million in the corresponding period of the previous fiscal year.
Hong Kong’s contribution to net FDI stood at $106.5 million (20.30%) during these four months, more than doubling compared to $52.39 million in the same period last year.
The United Kingdom held a 12.12% share with a direct investment of $64.18 million, experiencing a decline of 20.81% year-on-year.
Other notable investors included the Netherlands, the U.S., and Switzerland, contributing $55.8 million, $34.6 million, and $33.2 million, respectively, during the same period.
Foreign Portfolio Investment (FPI), reflecting investments in the equity market, showed positive trends with net FPI inflows at $1.38 million in October and a cumulative investment of $10.9 million during the first four months of fiscal year 2024, contrasting with a divestment of $14.8 million in the same period the previous year.
The U.S. emerged as the primary portfolio investor, injecting $3.7 million in October and $27.9 million during the first four months of fiscal year 2024.
The total foreign investment in the review month totaled $126.79 million, slightly lower by 7.88% compared to October 2022’s $137.64 million.
Cumulatively within the first four months of fiscal year 2024, total foreign investment increased by 17.81% year-on-year, reaching $538.81 million compared to the $457.34 million reported in the corresponding period of the previous year.
