Foreign direct investment jumps 17pc in December

Published January 17, 2019
Overall foreign investment plunges 77pc in first half of FY19. — AFP/File
Overall foreign investment plunges 77pc in first half of FY19. — AFP/File

KARACHI: The foreign direct investment (FDI) jumped by 17 per cent during December 2018, according to latest data released by the State Bank of Pakistan (SBP) on Wednesday.

The FDI increased to $319 million during December from $272.8m in the same month last year. Higher inflows during the month improved overall six-month FDI figures since total direct investment during July-Nov slumped by 35pc.

On a cumulative basis, the FDI during the first half (July-December) of 2018-19 fell by 19pc to $1.31 billion from $1.63bn recorded during the same period last fiscal year mainly concentrated in the oil and gas exploration sector, chemicals, power (thermal and hydel), construction sector and financial services.

However, total foreign investment during the first half of the fiscal year fell by a mammoth 77.2pc to $899.5m from $4bn last year attributable to an almost non-existent portfolio investment during the period under review.

Overall foreign investment plunges 77pc in first half of FY19

In line with the trend since the announcement of China-Pakistan Economic Corridor, China emerged as the leading investor in the country pledging $760m – making up for almost 58pc of the total investment during the six months — followed by UK with $116m. The wide margin reflects Pakistan’s increasing reliance on the Asian giant for its investment needs.

Despite making up for more than half of the total FDI, Chinese investments dropped by 31pc from the $1.1bn received last year. The drop is attributable to the slowdown in CPEC-related projects.

UK ranked second in the list of top investors as it invested $116m during the first half of the fiscal year with the US investing $54m, Japan $54m, South Korea $59.6m and Netherlands $53m.

On the other hand, Malaysian investments during the first half of fiscal year in the country dipped to $15m from the $133m last year.

The government is expecting large investments from Saudi Arabia, UAE and China. The government recently announced that Saudi Arabia is willing to invest up to $10bn in the country’s petroleum sector while UAE is also expected to invest $3bn.

The government has adopted a two-way strategy to improve its external account; increasing exports and attracting foreign investment in addition to increasing inward remittances from the Gulf economies. Prime Minister Imran Khan is scheduled to visit Qatar to pursue Doha to fulfil its promise of hiring 100,000 Pakistani workers.

Published in Dawn, January 17th, 2019

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Strange claim
Updated 21 Dec, 2024

Strange claim

In all likelihood, Pakistan and US will continue to be ‘frenemies'.
Media strangulation
Updated 21 Dec, 2024

Media strangulation

Administration must decide whether it wishes to be remembered as an enabler or an executioner of press freedom.
Israeli rampage
21 Dec, 2024

Israeli rampage

ALONG with the genocide in Gaza, Israel has embarked on a regional rampage, attacking Arab and Muslim states with...
Tax amendments
Updated 20 Dec, 2024

Tax amendments

Bureaucracy gimmicks have not produced results, will not do so in the future.
Cricket breakthrough
20 Dec, 2024

Cricket breakthrough

IT had been made clear to Pakistan that a Champions Trophy without India was not even a distant possibility, even if...
Troubled waters
20 Dec, 2024

Troubled waters

LURCHING from one crisis to the next, the Pakistani state has been consistent in failing its vulnerable citizens....