FDI rises sharply in March

Published April 21, 2020
Last year, the FDI fell to its lowest since FY16 as inflows dipped to $1.362bn. — Reuters/File
Last year, the FDI fell to its lowest since FY16 as inflows dipped to $1.362bn. — Reuters/File

KARACHI: Foreign Direct Investment (FDI) into the country continued its rising trend despite the emergence of coronavirus as it jumped by 137 per cent during the first nine months of current fiscal year while inflows in March also surged by 92pc.

The State Bank of Pakistan’s (SBP) latest data issued on Monday showed the country received $2.148 billion in FDI during July-March period – up 137pc – compared to $905 million in the corresponding period last year.

Last year, the FDI fell to its lowest since FY16 as inflows dipped to $1.362bn.

In addition, March also saw increased inflows by 92pc to $278.7m compared to same month last year. But inflows in March, compared to February, saw a sharp slide downward to $278.7m from $562.6m.

According to SBP, the overall foreign private investment increased by 312pc to $2.044bn during July-March compared to just $495.6m in the same period last fiscal year.

Country-wise details showed China as the keen investor in the country as it suddenly pumped FDI during the period under review. The data showed inflows from China during the nine months jumped to $872m compared to just $22.4m in the same period last fiscal year.

Inflows from United States remained relatively unchanged at $64.9m during the nine months compared to $64.5m last year. Inflows from UK dropped significantly to $90.4m during the period compared to $150m last year.

Other important inflows were $167m and $135m, from Malta and Hong Kong respectively.

The debt relief for one year from global lenders and additional help of $1.4bn from the International Monetary Fund have strengthened the SBP’s foreign exchange reserves helping the local currency gain against greenback.

T-bills see renewed inflows

Special convertible rupee account data released on Monday showed $200 million inflow into treasury bills along with an outflow of $9mn.

The inflow came one day after the central bank cut interest rates by 2 percentage points in an emergency meeting.

According to bankers it landed late in the trading session and jolted the exchange rate.

Published in Dawn, April 21st, 2020

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

Opinion

Editorial

PTI in disarray
Updated 30 Nov, 2024

PTI in disarray

PTI’s protest plans came abruptly undone because key decisions were swayed by personal ambitions rather than political wisdom and restraint.
Tired tactics
30 Nov, 2024

Tired tactics

Matiullah's arrest appears to be a case of the state’s overzealous and misplaced application of the law.
Smog struggle
30 Nov, 2024

Smog struggle

AS smog continues to shroud parts of Pakistan, an Ipsos survey highlights the scope of this environmental hazard....
Solidarity with Palestine
Updated 29 Nov, 2024

Solidarity with Palestine

The wretched of the earth see in the Palestinian struggle against Israel a mirror of themselves.
Little relief for public
29 Nov, 2024

Little relief for public

INFLATION, the rate of increase in the prices of goods and services over a given period of time, has receded...
Right to education
29 Nov, 2024

Right to education

IT is troubling to learn that over 16,500 students of the University of Karachi (KU) have defaulted on fee payments...