May 16, 2018 (BE2C2) — Foreign Direct Investment (FDI) increased 2.4% in July-April, amounting to $2.24 billion from $2.18 billion in the same 10-month period the previous year.
According to data released on Tuesday by the State Bank of Pakistan (SBP), the country witnessed an inflow of FDI amounting to $2.8 billion in the 10-month period, against an outflow of $565.8 million in the same period of the previous year.
China continued to lead the pack in terms of net investment in Pakistan with a cumulative FDI of $1.414 billion in the 10-month period. UK was the second-largest contributor in terms of net FDI with a tally of $244.5 million in the 10-month period, followed by Malaysia (net FDI of $123.5 million).
US with a net FDI of $81.6 million. Switzerland, the Netherlands and Hungary were the next largest contributors of FDI in the 10-month period with net investment of $72 million, $61.4 million and $59.1 million, respectively.
Understandably, the power sector attracted the largest amount of FDI with a cumulative net inflow of $750 million. With power projects under the China-Pakistan Economic Corridor (CPEC) moving ahead at full throttle, the sector has been a beneficiary in terms of attracting state-backed investment from China.
Construction was second in terms of sector with FDI of $561 million, followed by financial business ($272 million) and oil and gas exploration ($165 million).
With CPEC and heavy investments planned along the corridor, experts believe Pakistan will continue to attract inflows from China as construction picks up pace in the next few months