Karachi: The State Bank of Pakistan (SBP) reported on Monday (February 20) that the country’s foreign direct investment (FDI) more than doubled to USD 222 million in January 2023 compared to the same period last year, news sources reported.
According to the SBP report, 57% of the total amount of FDI came from China and Japan, which accounted for the majority of the growth. This upward trend in FDI inflow follows a protracted period of outflow that caused the rupee to weaken recently. However, when compared to the first seven months of the last fiscal year (FY) 2021–22, the FDI has fallen from USD 1.22 billion to USD 683.5 million in the corresponding period this year, which is a 44.2% dip. For the first seven months, China and Japan contributed USD 200.2 million and USD 134 million in investment inflows, respectively. Switzerland and the United Arab Emirates made significant contributions as well, with Australia making the largest net outflow.
It is important to mention that Pakistan and the IMF are currently negotiating the release of USD 1.1 billion under the Extended Fund Facility (EFF). Pakistan is scheduled to receive the funds required to stabilise the repayment of its external debt and its access to fiscal credits.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
