Foreign Direct Investment
In November 2023, China emerged as the leading investor in Pakistan, contributing a net direct investment of $74.65 million, according to data from the State Bank of Pakistan (SBP). The United Kingdom and Hong Kong followed, investing $23.87 million and $22.65 million, respectively, during the same period.
For the cumulative period of July to November in fiscal year 2024 (5MFY24), China maintained its position as the largest investor with a net foreign direct investment (FDI) of $232.7 million. Hong Kong and the United Kingdom secured the second and third positions with net FDIs of $129.2 million and $88.1 million, respectively.
The total FDI for the first five months of fiscal year 2024 reached $656.1 million, marking an 8.1% year-on-year increase compared to the corresponding period in the previous fiscal year, which recorded FDI at $606.9 million.
Despite China holding the majority share of direct investments (35.47%) during 5MFY24, there was a notable decrease of 7.08% compared to the same period in the previous fiscal year, when China’s FDI amounted to $250.4 million.
Hong Kong’s net FDI during 5MFY24 stood at $129.2 million, reflecting a significant 50.37% year-on-year increase from $85.9 million in the same period last year. The United Kingdom, as the third-largest investor, contributed $88.1 million, representing a decrease of 13.54% compared to the previous year.
Other notable investors during 5MFY24 included the United States, Netherlands, and Switzerland, with net FDIs of $44.1 million, $41.8 million, and $33.3 million, respectively.
Foreign Portfolio Investment (FPI) in the equity market for November amounted to $24.6 million, with a cumulative FPI of $38.7 million during 5MFY24. The United States was the largest portfolio investor during the month and the cumulative period, with investments of $26.8 million and $35.7 million, respectively.
The total foreign investment for November 2023 reached $156 million, compared to $118.14 million in the same month of the previous year. Cumulatively for 5MFY24, total foreign investment increased by 20.73% year-on-year to $694.8 million.
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