Pakistan has had a sharp decline in foreign direct investment (FDI), with disinvestments amounting to $173.2 million in January 2024—a marked decrease from the $211.1 million in direct investments made in December 2023, according to the State Bank of Pakistan (SBP). Since October 2018, this is the largest negative foreign direct investment.
Year-on-year comparison reveals a decrease from $236.7 million in the same period last year. The cumulative FDI for the first seven months of FY24 fell to $689.5 million from $876.8 million in the prior year.
The comprehensive analysis indicates a decrease of 33.63% in Foreign Direct Investment (FDI) inflow to $184.7 million, accompanied by a surge in outflow to $357.9 million. Portfolio investment outflows also witnessed a rise, with $33.8 million exiting through equity securities, a notable increase compared to the $1.1 million outflow observed in January 2023.
Foreign private divestment, encompassing both direct and portfolio investments, amounted to $207 million in January 2024, declining from the previous year’s inflow of $235.7 million. Conversely, foreign public investment showed improvement, reaching $59.3 million compared to $8.9 million the previous year.
Overall, January 2024 marked a total foreign divestment of $147.7 million, indicating a significant shift from the $244.5 million investment recorded during the same period last year. This underscores the critical necessity for measures aimed at enhancing Pakistan’s investment climate.
