ISLAMABAD: In January 2024, Pakistan’s Power Sector experienced the largest net outflow of Foreign Direct Investment (FDI), amounting to $242 million,
The State Bank of Pakistan disclosed this development in its latest data released today.
The Telecommunications sector recorded divestment of $15.16 million.
On the flip side, the trade sector ranked first in terms of the highest inflow, receiving $25.1 million during the review month.
During the first seven months of the fiscal year 2024 (7MFY24), the power sector garnered the highest inflow among all sectors, with FDI reaching $190.96 million. This was a decrease from the $544.1 million recorded during the same period in the previous fiscal year (7MFY23).
Hydel Power projects under the Power Segment attracted the most investor attention, receiving net inflows of $275.4 million during 7MFY24, up by 30.96% compared to the previous fiscal year.
The Oil & Gas exploration sector followed closely, experiencing a net FDI of $134.64 million during the review period, marking a significant increase from the previous fiscal year.
The Financial Business sector received cumulative net inflows of $108.18 million, although it experienced a decline of 35.19% compared to the previous year.
Conversely, the communication sector witnessed the highest disinvestment of $94.97 million during 7MFY24, marking a decrease from the previous fiscal year.
The Transport Equipment (Automobiles) sector recorded a negative FDI of $4.7 million, compared to an inflow in the same period of the previous year.
Similarly, the Mining & Quarrying sector faced an outflow of $1.94 million during 7MFY24, a significant decrease from the previous fiscal year.
Notably, in January, FDI in the country turned negative, reaching $173.2 million, the highest divestment since October 2018.
Cumulatively, within 7MFY24, FDI decreased to $689.5 million compared to $876.8 million reported in the corresponding period last year.
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