Karachi, July 20, 2024 – Pakistan has experienced a remarkable 153 percent increase in total foreign investment during the fiscal year 2023-24. According to the State Bank of Pakistan (SBP), the total foreign investment soared to $1.52 billion, up from $601 million in the preceding fiscal year.
The significant rise in foreign investment is attributed to both foreign public investment and foreign private investment. Foreign public investment saw notable changes, particularly in debt securities, which recorded an outflow of $503 million in FY24. This is a substantial improvement compared to the outflow of $1.01 billion in the last fiscal year.
On the other hand, foreign private investment showed a promising increase. The total foreign private investment grew by 25.5 percent, reaching $2.02 billion in FY24, compared to $1.61 billion in the previous fiscal year. This category includes foreign direct investment (FDI) and portfolio investment, both of which contributed to the overall increase.
FDI specifically saw a notable rise, increasing by 17 percent to $1.90 billion in FY24, up from $1.63 billion in the prior fiscal year. This increase in FDI highlights the growing confidence of foreign investors in Pakistan’s economic prospects and investment climate.
In addition to FDI, portfolio investment under the foreign private investment category recorded a significant turnaround. There was an inflow of $120 million in FY24, a sharp contrast to the outflow of $16.1 million in the preceding fiscal year. This positive shift in portfolio investment further underscores the attractiveness of Pakistan’s financial markets to foreign investors.
The surge in foreign investment is a positive sign for Pakistan’s economy, indicating increased investor confidence and potential for further economic growth. The government and the SBP are expected to continue efforts to create a more conducive environment for foreign investment, aiming to sustain and build on this momentum in the coming years.