- FDI flows in November jumped 27% to $219 million.
- China remains the leading investor with $469 million in FDI.
- The UK contributed $113 million from July to November.
Pakistan’s net foreign direct investment (FDI) increased by 31 percent to $1.124 billion in the first five months of the current fiscal year, The News reported.
Data released by the State Bank of Pakistan (SBP) on Tuesday revealed a net FDI inflow of $219 million in November. This represents an increase of 27% from the $172 million recorded in the same month last year and an increase of 65% from the $133 million recorded in October of this fiscal year.
The substantial growth in FDI reflects Pakistan’s success in attracting foreign investors, thanks to improving macroeconomic indicators.
According to SBP data, the majority of direct investments came from China, with FDI from Chinese companies increasing 60% to $469 million in the July-November period of FY25. from Hong Kong also increased by 44%, reaching $116 million.
The UK contributed $113 million in FDI from July to November FY25, compared to $100 million in the same period last year.
In terms of sector-specific investments, the power sector saw a significant increase of 51%, with FDI amounting to $454 million from July to November FY25. The financial sector received $249 million in FDI during this period, a slight increase from $247 million a year earlier.
FDI in the gas and exploration sector increased by 24%, reaching $125 million during the same period.
Meanwhile, the country recorded a current account surplus of $729 million in November, the highest level since February 2015. This compares to a surplus of $346 million the previous month and a deficit of $148 million. dollars in November 2023, according to central bank data. Tuesday.
November marked the fourth consecutive month of surplus. In the first five months of fiscal 2025, Pakistan recorded a current account surplus of $944 million, compared to a deficit of $1.67 billion in the same period last year.
The substantial monthly surplus of 111% in November was attributed to a reduction in the trade deficit, which fell 14% month-on-month to $1.361 billion, while the services deficit narrowed by 43% to $152 million.
Additionally, the primary deficit decreased by 7% on a monthly basis to reach $843 million in November. Imports of goods fell 10% to $4.136 billion, while imports of services fell 13% to $828 million.
Total goods exports rose 3% year-on-year to $2.775 billion, but fell 8% month-on-month in November.