According to State Bank of Pakistan, Pakistan’s Foreign Direct Investment (FDI) jumps 23.5 per cent in August 2020. Pakistan attracted $112.3 million FDI in August 2020, compared to $90.3m in same month of 2019. Moreover, in the first two months of FY21, the FDI rushed 40pc to $226.7m, compared to $162m in the same period of last fiscal year. The direct investment, however, was lower on Month-on-month basis by $2m or 1.75pc from July’s figure of $114.3m.
Since the emergence of Covid-19 in March this year, the overall world economies have faced sever economic and financial crisis. Likewise, inflows to Pakistan started falling from March to June, 2020. In July, 2020 easing of economies worldwide and better results in fight against Covid-19 pandemic by Government posted an impressive increase in FDI up by 61pc year-on-year to $114.3m.
The major contributors towards the Pakistan’s FDI jump were financial businesses having an inflow of $85.4m in the compared to $14m in the first two months of the previous year. Moreover, Communications sector received $37m during the July and August 2020 as against $44.9m in corresponding months of FY20. Similarly, the FDI in electrical machinery area more than doubled to $36.5m, from $15m is same period. The other sectors which attract Inflows is oil and gas exploration sector. It witnessed $34.3m FDI during the two months, as against $25m in the same period of last fiscal year.
Country-wise, FDI from China stood at $6.6m during July and August this year. Other important investors were from the UK and US. The FDI from the UK came in at $18.6m in 2MFY21, compared to $ 17.4m in corresponding period of last fiscal year while those from latter fell to $14.9m, versus $20.7m.
These latest figures are much encouraging to the dwindling economy of Pakistan especially on the external front.
The Government of Pakistan has launched a new Investment Scheme for Overseas Pakistanis called Naya Pakistan Certificate. Read about this new scheme here.
