Net foreign direct investment (FDI) in Pakistan plunged 62 percent to $95 million in October 2022, compared to $247.3 million recorded in the same month last year, revealed State Bank of Pakistan (SBP) data on Monday.
During July-October FY23, FDI inflows were $514.5 million against outflow of $166.2 million.
The amount of Net FDI from July through October of the prior fiscal year was $726.5 million, a decrease of $378.2 million.
Net FDI for the month of October was $94.9 million, a 62% decline from the $247.3 million in net FDI for the same month last year.
FDI increased by 13% month over month compared to the $84 million recorded in September.
Meanwhile, during four months of FY23, overall Chinese investment in the country declined sharply by 27%. However, China still remained the largest investing country, accounting for 14.5% of the total share with net FDI of $74.8 million compared with $102 million during the same period last year.
With a net FDI of $69 million, up from $54 million during the same time previous year and representing 13% of the overall share, the UAE emerged as the second-largest investor.
30% ($155.5 million) of all investments made during 4MFY23 were made in the energy sector, followed by the financial industry ($97.5 million) and oil and gas exploration ($18.5 million).
The development occurs as the nation struggles to increase its foreign exchange reserves through non-debt-creating inflows and faces a dollar shortage.
While Pakistan has recently received some $1.5 billion inflows from the Asian Development Bank and the World Bank also announced a $1.3 billion package for the country, investments remain elusive.
According to SBP, Pakistan’s current account deficit (CAD) decreased by 46.8% during the first four months of this fiscal year (FY23) as a result of lower import costs and somewhat higher exports.
