FDI declines by 43% YoY in July: SBP

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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.

FDI July

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.

It also resulted due to wide-ranging measures taken in recent months to moderate growth and contain imports, including tight monetary policy, fiscal consolidation and some temporary administrative measures.

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

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