Foreign direct investment in Pakistan plunges by 38.7pc in July

[waseemgauhar]

KARACHI: Foreign direct investment fell sharply by 38.7 per cent during the first month of the new fiscal FY22 compared to July FY21, following the declining trend noted in the previous fiscal year.

The State Bank’s latest data issued on Tuesday showed that the country received only $90 million as FDI during July against an inflow $128.7m in the same month of the previous fiscal.

The beginning of the new fiscal did not show any improvement against the trend dominated by the previous fiscal FY21 as it fell by 29 per cent: the country received $1.847bn in last fiscal year.

The data also shows the inflow from China was drastically low compared to last year. Pakistan received $6.6m in July from China while the inflow was $44.1m in July FY21. This poor inflow is the real reason for over 38 per cent decline in July. China has been the largest investor for the last several years. In fact, no country invested like China for more than five years.

The highest inflow of $16.6m was noted from Singapore against an inflow of $3.2m in July last year. This kind of improvement was also noted in the case of Hong Kong as the inflow this year increased to $13.2m compared to $4.6m in July FY21.

The inflow from the United States in July was $14.1m compared to an outflow of $39.2m in July FY21. Inflow from the UK also improved to $8.5m compared to an outflow of $20.7m in the previous fiscal. The FDI from the UAE fell to $6.6m compared to $27.6m of July last year.

Experts believe that the foreign investment would further fall in the coming months due to instability in Afghanistan. Investors would wait till things settle down in Kabul.

It was also noted that Pakistani dollar-denominated bonds fell by 1.6 per cent in a single session on Monday as the investors fear that Pakistan may receive spillover impact due an uncertain situation in Afghanistan. Trading with Afghanistan has already come to the lowest level during recent weeks.

The exports to Afghanistan increased to $983m in FY21 against $890m in FY20. It was $1,192m in FY19 showing the decline of export to the country. The imports from Afghanistan increased to $179m compared to $121m in FY20 while it was $170m in FY19.

The total foreign private investment of the country in July FY22 increased by 60 per cent due to extremely low outflow of foreign portfolio investment. The foreign private investment rose to $88.8m compared to $55.5m in July FY21. The outflow of portfolio investment was just $1.1m in July against an outflow of $73.2m in July last year.

Foreign direct investment plunges by 38.7pc in July - Newspaper - DAWN.COM

 

[Protest_again]

View attachment 770830
KARACHI: Foreign direct investment fell sharply by 38.7 per cent during the first month of the new fiscal FY22 compared to July FY21, following the declining trend noted in the previous fiscal year.

The State Bank’s latest data issued on Tuesday showed that the country received only $90 million as FDI during July against an inflow $128.7m in the same month of the previous fiscal.

The beginning of the new fiscal did not show any improvement against the trend dominated by the previous fiscal FY21 as it fell by 29 per cent: the country received $1.847bn in last fiscal year.

The data also shows the inflow from China was drastically low compared to last year. Pakistan received $6.6m in July from China while the inflow was $44.1m in July FY21. This poor inflow is the real reason for over 38 per cent decline in July. China has been the largest investor for the last several years. In fact, no country invested like China for more than five years.

The highest inflow of $16.6m was noted from Singapore against an inflow of $3.2m in July last year. This kind of improvement was also noted in the case of Hong Kong as the inflow this year increased to $13.2m compared to $4.6m in July FY21.

The inflow from the United States in July was $14.1m compared to an outflow of $39.2m in July FY21. Inflow from the UK also improved to $8.5m compared to an outflow of $20.7m in the previous fiscal. The FDI from the UAE fell to $6.6m compared to $27.6m of July last year.

Experts believe that the foreign investment would further fall in the coming months due to instability in Afghanistan. Investors would wait till things settle down in Kabul.

It was also noted that Pakistani dollar-denominated bonds fell by 1.6 per cent in a single session on Monday as the investors fear that Pakistan may receive spillover impact due an uncertain situation in Afghanistan. Trading with Afghanistan has already come to the lowest level during recent weeks.

The exports to Afghanistan increased to $983m in FY21 against $890m in FY20. It was $1,192m in FY19 showing the decline of export to the country. The imports from Afghanistan increased to $179m compared to $121m in FY20 while it was $170m in FY19.

The total foreign private investment of the country in July FY22 increased by 60 per cent due to extremely low outflow of foreign portfolio investment. The foreign private investment rose to $88.8m compared to $55.5m in July FY21. The outflow of portfolio investment was just $1.1m in July against an outflow of $73.2m in July last year.

Foreign direct investment plunges by 38.7pc in July - Newspaper - DAWN.COM

With the Afghanistan fiasco, West will not think of investing in Pakistan. Pakistan needs to pull up its socks for the next 2 years and have to work on security and stability in both Pakistan and Afghanistan. If that doesn't happen, Pakistan will be loosing out big time in terms of FDI in the region.

 

[Splurgenxs]

With the Afghanistan fiasco, West will not think of investing in Pakistan. Pakistan needs to pull up its socks for the next 2 years and have to work on security and stability in both Pakistan and Afghanistan. If that doesn't happen, Pakistan will be loosing out big time in terms of FDI in the region.

I herd , that Afghanistan is sitting on big Lithium and rare earth deposits , could just be some hedging action at play.

China could be waiting it out , too see how the dust settles. No one would want there lines being attacked by marauders 24/7

 

[Windjammer]

The OP @waseemgauhar allegedly a Pakistani, started and posted Seven threads today, six showing Pakistan in negativity and one praising India....why are some losers too ashamed to show their real flags.
@waz @Foxtrot Alpha @SQ8 @Adios Amigo

https://defence.pk/pdf/search/36326637/

 

[SQ8]

The OP @waseemgauhar allegedly a Pakistani, started and posted Seven threads today, six showing Pakistan in negativity and one praising India....why are some losers too ashamed to show their real flags.
@waz @Foxtrot Alpha @SQ8 @Adios Amigo

https://defence.pk/pdf/search/36326637/

He was a false flagger and making multiple accounts “Why is my account not approved!! I shall complain to some authority!! “

Ghatiya nasl , Ghatiya qaum bhaktoras

 

[Dalit]

The OP is an Indian.

He was a false flagger and making multiple accounts “Why is my account not approved!! I shall complain to some authority!! “

Ghatiya nasl , Ghatiya qaum bhaktoras

These Indians are scum of the earth. It is an incredible feeling to defeat this evil in Afghanistan.

 

[Dual Wielder]

He was a false flagger and making multiple accounts “Why is my account not approved!! I shall complain to some authority!! “

Ghatiya nasl , Ghatiya qaum bhaktoras

why isn't @truthfollower permanently banned? his is no doubt a Bharti false flagger..

 

[Dalit]

why isn't @truthfollower not permanently banned? his is no doubt a Bharti false flagger,

This bastard is 100% Indian.

 

[SQ8]

why isn't @truthfollower permanently banned? his is no doubt a Bharti false flagger..

No proof provided - either he is a masterful internet sleuth or is really a disgruntled Pakistani many of them I know hold more acerbic views than his regular complaining.

 

[truthfollower]

No proof provided - either he is a masterful internet sleuth or is really a disgruntled Pakistani many of them I know hold more acerbic views than his regular complaining.

thank you

 

[Patriot forever]

No proof provided - either he is a masterful internet sleuth or is really a disgruntled Pakistani many of them I know hold more acerbic views than his regular complaining.

He/she is probably a nida kirmani fan, a classic case of confused identity right now peddling western/indian propaganda regarding Afghanistan but has never shown such behavoir when it comes to IOK.

 

[SQ8]

He/she is probably a nida kirmani fan, a classic case of confused identity.

Perhaps - but that doesn’t make them less Pakistani. Otherwise no difference between a RSS bhakt or Pakistanis.

 

[A1Kaid]

Can’t just look at FDI trend in Pakistan. Have to look at the trend across the whole spectrum. If I recall correctly FDI generally fell across the world in the last 2 years due to pandemic and more risk-averse investors.

Global foreign direct investment fell by 42% in 2020, outlook remains weak

Global foreign direct investment (FDI) collapsed in 2020, falling 42% from $1.5 trillion in 2019 to an estimated $859 billion, according to an UNCTAD Investment Trends Monitor published on 24 January. Such a low level was last seen in the 1990s and is more than 30% below the investment trough...

unctad.org

 

[MultaniGuy]

If the west does not invest then China will fill in the void. good riddance to the west then.

 

[Patriot forever]

Perhaps - but that doesn’t make them less Pakistani. Otherwise no difference between a RSS bhakt or Pakistanis.

The analogy is wrong sir. The bakhts ( mostly a religious mob) as well as normal indians will not tolerate dissent.