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Home Business Foreign Direct Investment in Pakistan drops 30% in July 2021

Foreign Direct Investment in Pakistan drops 30% in July 2021

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Foreign Direct Investment in Pakistan drops 30% in July 2021

KARACHI – Foreign Direct Investment (FDI) in different sectors of Pakistan’s economy declined by 30 per cent to $89.90 million in July, the first month of the new fiscal year 2021-22, as compared to previous year.

Data shared by a private firm shows that the FDI fell by 34% in July 2021 as compared to June 2021.

In June 2021 alone, the FDI recorded at $135.4 million, which was also 22.5% lower than the investment of $174.8 million witnessed in the same month of last year.

Singapore remained the highest investor of the month, while Pakistan’s power sector attracted highest investment.

The inflow of foreign investment into different sectors of Pakistan’s economy fell by 28.9% to $1.85 billion in outgoing fiscal year 2020-21.

According to data released by the State Bank of Pakistan (SBP) on Friday, the foreign investment in Pakistan had stood at $2.6 billion in fiscal year 2019-20.

The COVID-19 pandemic is seen as major reason behind massive decline in foreign direct investment as the health crisis forced countries to put ban on air travel. The travel restriction prevented foreigners from visiting the country for investment purposes.

Last month, Finance Minister Shaukat Tarin stressed to include specific measures for encouraging Foreign Direct Investment (FDI) and consolidation of fragmented export industry in Pakistan.

Read more: https://pakobserver.net/vibrant-industrial-sector-skilled-labour-to-attract-fdi-khusro/