Karachi: The Foreign Direct Investment (FDI) in Pakistan declined sharply on a year-on-year basis during August of the fiscal year 2023.
The State Bank of Pakistan (SBP), in a provisional report on Wednesday, mentioned that Pakistan attracted FDI amounting to $110.7 million during August of FY23. This is an 11.7% or $15 million drop compared to the FDI received in the same month a year earlier, which was $125.7 million.
According to the report, the total inflow amounted to $133.6 million compared to the outflow of $78.2 million.
Cumulatively, during the first two months of FY23 (July and August), the total FDI amounted to $169.5 million – a 26% or $60 million drop in the FDI attracted by the country during the same period last year.
Pakistan’s Current Account Deficit in August shrinks by 42% MoM
Pakistan’s Current Account Deficit (CAD) in August shrank by 42.13%, the State Bank of Pakistan reported on Wednesday.
According to the monthly report published by the Central Bank on the balance of payments, on a Month-on-Month basis, the current account deficit shrank by 42.13% during August of the fiscal year 2023 and fell to $0.7 billion from $1.21 billion recorded a month earlier.
According to the report, exports of goods in August amounted to $2.8 billion.
Similarly, imports amounted to $5.75 billion during the second month of FY23.
However, on a year-on-year basis, the current account deficit also dropped by 53.84% during August because $1.52 billion of deficit was recorded during the same period last year.
According to the State Bank, cumulatively, July-August CAD declined by $0.5 billion to $1.9 billion compared to the same period last year, mainly due to the increase in exports by $0.5 billion and contraction in imports by $0.2 billion.