Karachi: The Foreign Direct Investment (FDI) in Pakistan declined sharply on a Year-on-Year basis during July of the fiscal year 2023.
The State Bank of Pakistan (SBP), in a provisional report on Tuesday, mentioned that Pakistan attracted FDI amounting to $58.9 million during July of FY23. This is a 43% or $45 million drop compared to the FDI received in the same month a year earlier, which was $103.8 million.
According to the report, the total inflow amounted to $114.2 million compared to the outflow of $55.3 million.
Countrywise, Pakistan received the most amount of FDI from the United Arab Emirates, which amounted to $12.6 million, with Switzerland and Germany coming in at second and third places with $11.5 and $6.5 million in FDI, respectively.
Current account deficit shrinks by 44.6% MoM in July
The Current account deficit of Pakistan shrank by 44.6% in July, clocking in at $1.21 billion, 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 difference between imports and exports shrank by 44.6% during the first month of the fiscal year 2023 and fell to $1.21 billion from $2.187 billion recorded in June of FY22.
In its statement, the SBP attributed this fall in the current account deficit to a sharp decline in energy imports and continued moderation in other imports.
According to the report, exports of goods in July amounted to $2.295 billion. Compared to $3.315 billion, it is a 30% fall in exports.
Similarly, imports also dropped by 23.4% to $5.385 billion in July FY23 from $7.033 billion in June.
Read: Pakistan’s exports, imports down in July: PBS
However, on a year-on-year basis, the current account deficit amounted to $359 million in July because $851 million deficit was recorded during the same month last year.
Read: Pakistan’s Current Account Deficit crosses $17B mark during FY22
