Karachi, November 20, 2023 – Pakistan has witnessed a robust 18% increase in total foreign investment during the initial four months (July – October) of the fiscal year 2023-24, according to official data released by the State Bank of Pakistan (SBP) on Monday.
Substantial Growth in Foreign Investment
The SBP data reveals that total foreign investment surged to $539 million during the first four months of the current fiscal year, compared to $457 million in the corresponding period of the previous fiscal year. This notable growth signals positive investor confidence in Pakistan’s economic landscape.
Foreign Private Investment Takes the Lead
A significant portion of the total foreign investment comes from foreign private investment, which experienced a growth of 12.7%, reaching $535.60 million during July – October 2023-24. In comparison, the same period in the last fiscal year saw foreign private investment at $475 million.
Foreign Direct Investment (FDI) Highlights
Within the realm of foreign private investment, Foreign Direct Investment (FDI) witnessed a commendable increase of 7.1%, reaching $525 million during the reviewed four-month period. This contrasts with the FDI of $490 million during the same months in the previous fiscal year. The surge in FDI indicates a sustained interest from international investors in Pakistan’s business and economic prospects.
Portfolio Investment Shows Remarkable Surge
Under the foreign private investment category, portfolio investment experienced an outstanding surge of 174%, with an inflow of $11 million during the first four months of the current fiscal year. This is in stark contrast to the outflow of $14.8 million during the equivalent period in the last fiscal year. The substantial increase in portfolio investment demonstrates growing confidence in the Pakistani financial markets.
Notable Rise in Foreign Public Investment
Foreign public investment, the other vital component of the total foreign investment, marked an impressive growth of 118%, totaling $3.2 million during July – October 2023-24. In the same period of the previous fiscal year, there was an outflow of $17.8 million. This positive shift signifies increased interest from foreign entities in participating in public projects and collaborations.
Positive Economic Indicators
The upward trajectory in foreign investment across various categories highlights Pakistan’s attractiveness to global investors. The government’s efforts to create a conducive business environment and implement investor-friendly policies seem to be yielding positive results.
