KARACHI: In the first five months of the current fiscal year, foreign direct investment (FDI) increased by more than 31%.
According to the State Bank’s most recent figures released on Tuesday, the nation attracted $1.123 billion in foreign direct investment (FDI) from July to November of FY25, up 31.3 percent or $267 million from the $856 million inflow during the same time last year. November alone saw $219 million in foreign direct investment.
Even while the growth appears to be strong, the amount of inflow is nevertheless disappointing, especially considering the government’s commendable efforts to attract significant foreign investment.
In order to facilitate investors, foster collaboration across all government agencies, and expedite project development, the government authorized the creation of the Special Investment Facilitation Council on June 20, 2023. The council hasn’t been able to produce the expected outcomes, though.
According to financial experts, global investors view investing in Pakistan as dangerous due to the country’s ongoing political unpredictability. Although several macro indicators have improved, international investors—especially those who are new to Pakistan—would need to find the country’s ground reality compelling enough to invest there.
China continues to be the largest investor by nation, with inflows totaling $469 million in 5MFY25 compared to $293 million the previous year.
Compared to $80.3m, the inflow from Hong Kong was $115.7m. The UK contributed $113 million while Switzerland contributed $66 million.
