Pakistan experienced a substantial decline of 90 percent in net foreign investment during the first ten months of the current fiscal year 2022-2023, as indicated by data released by the State Bank of Pakistan (SBP) on Tuesday.
The report reveals that net foreign investment into the country amounted to $160 million, significantly down from $1.64 billion during the corresponding months of the previous fiscal year.
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This drastic fall in net foreign investment can be attributed to debt repayment against securities during the reviewed period. The government repaid a total of $1.01 billion from July to April 2022-2023, compared to an inflow of $473.5 million in the corresponding period of the previous fiscal year.
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In contrast, net foreign private investment remained relatively stagnant during the period under review. Pakistan received foreign inflows in the private investment sector totaling $1.169 billion from July to April 2022-2023, slightly higher than the $1.166 billion received in the same period of the previous fiscal year.
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Meanwhile, foreign direct investment (FDI) within the category of foreign private investment experienced a decline of 23 percent, amounting to $1.17 billion during the first ten months of the current fiscal year, compared to $1.52 billion in the corresponding months of the last fiscal year.
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However, the stock market witnessed a significant decrease in outflows during the reviewed period. Portfolio investment recorded an outflow of $0.9 million in the first ten months of the current fiscal year, notably lower than the outflow of $358 million in the same period of the previous fiscal year.
