Foreign direct investment grows by 9 percent in four months

KARACHI: The net inflow of foreign direct investment (FDI) into the country has increased by 9.1 percent to $733 million during first four months (July – October) of the current fiscal year, State Bank of Pakistan (SBP) said on Monday.

The net inflow of the FDI during the same period of the last fiscal year was $672 million.

Under the FDI the inflows were $988 million during the first four months of the current fiscal year as compared with $936 million in the corresponding period of the last fiscal year.

The outflows under the FDI also increased by 3.3 percent to $255 million during July – October 2020 as compared with $264 million in the same period of the last year.

Total net inflows under foreign private investment fell by 14.6 percent to $587 million during the period under review as compared with $687 million in the same period of the last year.

The fall in inflows of total foreign private investment may be attributed to significant outflows of portfolio investment during the period.

According to the statistics, the outflow from the capital market was at $146 million during the first four months of the current fiscal year as compared with inflow of $15.6 million in the same period of the last fiscal year.

The inflow of total foreign investment into the country posted 62.2 percent decline during the period under review. This decline may be attributed to significant decline in inflow in investment to debt securities.

The investment in debt securities fell by 137 percent to outflow of $162 million during the first four months of the current fiscal year as compared with inflow of $436 million in the same period of the last fiscal year.

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