According to the latest statistics issued by the State Bank of Pakistan (SBP), Foreign Direct Investment (FDI) has reduced drastically in the first half (July-Dec) of the Fiscal Year 2020-21 (FY21). According to the report, FDI drops by 30 percent in the first half of FY21.
The country drew $1.3 billion in FDI in the corresponding period of last fiscal year. FDI fell to $193.6 million in December from $493 million in the same month of last year.
FDI Drops 30% in the First Half of the Fiscal Year FY21
The FDI was recorded worth $952.6 million in the first half of FY21 as compared to the same period of the Fiscal Year 2019-20 (FY20) when it was $1,357.4 million. All this decrease is because of the pandemic uncertain situation. The investors are still not confident in the market especially as the second wave of the virus peaked in December 2020.
Additionally, the total FDI in December 2020 was $193.6 million as compared to an investment of $493 million in the same month last year which shows a decrease of approximately 61 percent. The overall FDI increased by 88 percent in FY20 standing at $2,561.2 million as compared to only $1,362.4 million in the Fiscal Year 2018-19 (FY19).
Furthermore, China invested $358.9 million with a 37.6 percent share in the overall FDI in the first half of FY21 followed by Hong Kong with an investment of $86.3 million and the Netherlands with a $72.3 million investment. The overall investment by China was also lower than in the same period last year which stood at $395.8 million.
The other significant contributions were from the United States and UK at $65m and $63m, respectively, both improved from $44m and $58m in the same period of last fiscal year.