Foreign Direct Investment Up by 538% in December 2023

The Foreign Direct Investment (FDI) in the country increased by a staggering 538 percent year-on-year (YoY) to $211 million in December 2023, compared to $33 million in December 2022. According to data released by the State Bank of Pakistan (SBP), net foreign direct investment during 6MFY24 stood at $863 million, up 35 percent YoY compared to $640 million reported in 6MFY23. Portfolio investment registered inflows of $71 million in 6MFY24 compared to outflows of $14 million in 6MFY23. Foreign public investment reported zero inflows in 6MFY24 compared to outflows of $1.019 billion in 6MFY23. The total foreign investment stood at $934 million in 6MFY24 compared to outflows of $393 million in 6MFY23. In December 2023, the country attracted foreign direct investment of $211 million, up 538 percent over investment of $33 million in December 2022 and 61 percent higher compared to investment of $131 million in November 2023. In December, portfolio investment saw inflows of $32 million compared to zero last year. Foreign public investment in December 2023 was null compared to outflows of $1.002 billion in December 2022. The total foreign investment in December 2023 stood at $243 million, compared to outflows of $969 million last year. During the 6 months in review, China emerged as the single largest investor by country, with $298.6 million poured into Pakistan. According to SBP data, Hong Kong came in second with $162.6 million, followed by the United Kingdom with $105.8 million. Sector-wise data reveals the power sector attracted $471.1 million, with $169.8 million going toward coal-based projects and $245.1 million in Hydel power. This was followed by the Financial Business sector, which invested $137 million, and the Oil & Gas Exploration sector, which invested $131.8 million.