In January 2024, Pakistan experienced a net outflow of $173 million, a decrease from the $237 million outflow during the same period last year.
Arif Habib Limited reports that this marks the highest foreign direct investment (FDI) outflow since October 2018.
Data from the State Bank of Pakistan (SBP) reveals that net foreign direct investment for the first seven months of FY24 amounted to $689 million, representing a 21 percent year-on-year decrease compared to the $877 million reported in the same period of FY23.
Portfolio investment saw inflows of $37 million in the first seven months of FY24, in contrast to outflows of $15.2 million in the corresponding period of FY23. However, in January 2024, portfolio investment experienced outflows of $33.8 million through equity securities.
Foreign public investment recorded inflows of $59.5 million during the first seven months of FY24, in contrast to outflows of $1.010 billion during the same period of FY23. Overall, total foreign investment amounted to $785.9 million in the first seven months of FY24, compared to outflows of $148.8 million in the same period of FY23.
In January 2024, foreign public investment totaled $59.3 million, compared to inflows of $8.9 million in January 2023.
Foreign investors withdrew $147.7 million in January 2024, compared to inflows of $244.5 million in January of the previous year.
During the seven-month review period, China emerged as the largest investor by country, pouring $386 million into Pakistan. Hong Kong followed with $207 million, and the United Kingdom with $146.1 million, according to SBP data.
Sector-wise breakdown reveals that the power sector attracted $539.8 million, with $198.1 million allocated to coal-based projects and $276.3 million to hydel power. The Financial Business sector invested $157.8 million, while the Oil & Gas Exploration sector invested $137 million.