Foreign investment drops by 40% in March 2021

KARACHI: Foreign direct investment (FDI) in different sectors of Pakistan’s economy like power, telecoms, financial business, and oil and gas production dropped 40 percent to $167.6 million in March 2021.

The State Bank’s latest data issued on Tuesday showed the foreign direct investment stood at $278.7 million in the same period of the previous fiscal year. China made the largest net investment of $126 million, mostly in the power sector, in March 2021.

In the first nine months (Jul-Mar) of current fiscal year 2020-21, the FDI inflows dropped 35 percent to $1.39 billion compared to $2.15 billion in the same period of last year.

China was the largest foreign investor in Pakistan. It poured a net $651 million in the first nine months of FY21, followed by Hong Kong, which invested a net $106 million. The United Kingdom invested $105 million.

China, Norway, Malta and Hong Kong had taken top positions among foreign investors in the same nine-month period of last year. They had invested $859 million, $289 million, $167 million and $135 million respectively during the period.