Foreign Direct Investment (FDI) in Pakistan, witnessed a remarkable 51.7% month-on-month (MoM) increase, reaching $258 million in March 2024, compared to $170 million in March of the previous year. This surge marks the highest FDI inflow since June 2022, according to the latest data from the State Bank of Pakistan (SBP).
However, despite this positive momentum in March, the FDI inflows for the first nine months (July-March) of the fiscal year 2024 registered a decrease of 9.7% compared to the same period in the previous year. The total FDI inflow from July to March stood at $1.099 billion, a drop of $118 million from the $1.217 billion received in the corresponding period of the previous fiscal year.
Pakistan’s FDI inflows have been relatively stable, hovering around $2 billion annually, which remains comparatively low within the region.
A notable trend in the recent data is the decline in FDI from major partners like China and the UAE. FDI inflows from China decreased to $262 million in the first nine months of FY24 from $556.6 million in the same period last year. Similarly, FDI from the UAE dropped to $27.7 million from $88.7 million. Despite these declines, the government is optimistic about attracting significant investments from the UAE under the Special Investment Framework Committee (SIFC).
Other significant contributors to FDI inflows during this period included Hong Kong with $264 million, the UK with $196.3 million, the USA with $100.7 million, and Japan with $5.2 million. It’s worth noting the growth in investment from Japan, which increased from $140 million in the same period last year.
As Pakistan navigates its FDI landscape, these insights offer a nuanced view of shifting investment patterns and opportunities for economic growth.
