FDI returns to positive territory in February

Foreign Direct Investment (FDI) jumped 16 per cent year-on-year to $131.2 million in February, the State Bank reported on Wednesday.

The increase in February inflows was also a welcome change from January’s dire situation, which saw a net outflow of $173m.

However, the overall trend for the fiscal year remains troubling, with FDI falling by 17pc to $821m during the first eight months (July to February). More worryingly, inflows from China, traditionally Pakistan’s largest investor, saw a steep decline of 80pc during this period.

This fiscal year has witnessed massive fluctuations in FDI inflows, mainly due to political and economic uncertainties. December has so far seen the highest monthly inflows of $211m.

The SBP data indicates a persistently low interest from foreign investors over the past decade, prompting the formation of a new body aimed at attracting investment, particularly from the Middle East.

Read more: https://www.dawn.com/news/1822813/fdi-returns-to-positive-territory-in-february