Pakistan's Foreign Investment Surges to $258 Million in March 2024

Pakistan's FDI jumps 51.7% in March 2024, reaching $258.04 million, the highest since June 2022. The power sector emerged as the largest recipient, signaling economic potential and attracting further investment.

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Rizwan Shah
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Pakistan's Foreign Investment Surges to $258 Million in March 2024

Pakistan's Foreign Investment Surges to $258 Million in March 2024

Pakistan's Foreign Direct Investment (FDI) reached $258.04 million in March 2024, a significant 51.7% increase compared to $169.91 million in the same period last year, according to the latest data from the State Bank of Pakistan (SBP). This marks the highest monthly FDI inflow since June 2022.

On a cumulative basis, Pakistan fetched an FDI of $1.1 billion in the first 9 months of the fiscal year 2024, compared to $1.22 billion in the same period last fiscal year, representing a 10% decrease. The top sources of FDI during this period were Hong Kong ($264 million), China ($262 million), the United Kingdom ($196 million), the United States ($101 million), and the Netherlands ($67 million).

The power sector emerged as the largest recipient of FDI, attracting $443 million, followed by oil and gas exploration ($171 million), financial business ($151 million), and petroleum refining ($70 million). In March 2024 alone, the power sector witnessed the highest net FDI worth $167.47 million, while the financial business and oil & gas explorations sectors experienced significant net inflows of $25.08 million and $19.95 million, respectively.

Why this matters: The surge in foreign investment, particularly in the power and energy sectors, is a positive sign for Pakistan's economy amid ongoing economic and political uncertainties. The higher FDI inflows in March are expected to help the new government improve the country's image abroad through economic reforms and attract further investment.

Despite the overall decline in FDI during the first nine months of the fiscal year, the month-on-month increase in March 2024 is seen as evidence of Pakistan's growing economic potential and attractiveness to global investors. The government expects to attract billions of dollars from the UAE under the SIFC and is actively seeking investment from other countries, such as Saudi Arabia, to further boost the economy.

Key Takeaways

  • Pakistan's FDI reached $258.04M in March 2024, up 51.7% YoY.
  • Cumulative FDI in 9M FY2024 was $1.1B, down 10% YoY.
  • Top FDI sources were Hong Kong, China, UK, US, and Netherlands.
  • Power sector attracted highest FDI of $443M, followed by oil/gas.
  • Higher March FDI seen as sign of economic potential, attracting more investment.